CMA to launch review in January
Loyalty pricing schemes have been successful for major grocers
CMA to further examine baby formula market

LONDON, Nov 29 Reuters Britain39;s antitrust regulator said it would launch a review of loyalty scheme pricing by supermarkets, such as Tesco39;s Clubcard and Sainsbury39;s Nectar, to consider whether it was fair that cheaper prices were available only to members.

Loyalty schemes have proved hugely successful for the UK39;s major supermarkets, offering much lower pricing for members.

The vast majority of customers now use them, and an increasing number of products come under the schemes over 8,000 at market leader Tesco.

We have … seen an increase in the use of loyalty scheme pricing by supermarkets, which means that price promotions are only available to people who sign up for loyalty cards, Sarah Cardell, CEO of the Competition and Markets Authority CMA, said on Wednesday.

This raises a number of questions about the impact of loyalty scheme pricing on consumers.

The CMA39;s review will begin in January 2024.

Updating on its review of the whole sector, the CMA also said it had found some branded suppliers had pushed up prices by more than their costs increased, but in most cases, shoppers could find cheaper alternatives.

It did find one area of concern, however, saying ineffective competition in the baby formula market could be leading to parents paying higher prices.

It said it would further examine this market as…