The best UK supermarket loyalty schemes: Tesco, Sainsbury's, Morrisons and more

As Co-op revamps its loyalty scheme. we look at how it compares to rival offers from Tesco, Sainsbury’s, Co-op and the rest.

UK supermarket loyalty schemes

Saving money at supermarkets is more crucial than ever before.

The last few years have seen incredible increases to the cost of our food. According to the Office for National Statistics, food prices have grown by 27% over the last two years, putting even more pressure on our household budgets.

One of the smartest ways to do so is to make use of supermarket loyalty schemes, but with so many different programmes in place it can be difficult to work out which is best for you. 

We run through the schemes on offer by each of the big UK supermarkets, and how they could save you cash on your food shop.

Co-op

The Co-operative has announced changes to the way its loyalty scheme works from 24 January.

Previously members earned 2p for every £1 spent on Co-op branded goods or services, which could then be spent on future shops at Co-op. In addition, for that same spend they would earn 2p for charities for every £1 spent.

Instead it’s going to ramp up its ‘Member Prices’ scheme, where members gain access to reduced prices on certain goods. 

Right now deals on the scheme include offers like pizza and ice cream for £5, two for £6 on certain ready meals and the lunch meal deal for £3.50 rather than £4.

The expansion will mean deals on branded as well as own-brand items.

Membership costs you £1.

Our verdict: The changes being made to Co-op are a pretty good indication of how membership schemes are moving, focusing on reduced prices for members on select items. As always, if you are going to buying those items anyway, it’s a great deal but if not membership may be less enticing now than was previously the case.

Asda

Asda reckons it has around five million customers currently making use of its Asda Rewards loyalty scheme. 

The scheme is a little different from regular loyalty schemes, in that rather than earn points when you spend you instead build up a ‘cashpot’ which you can then convert into a voucher to spend in the supermarket.

You need to download an app, and can then build up that cashpot in a few different ways, such as purchasing ‘star products’, completing ‘missions’ and meeting spending milestones.

It’s a free scheme and easy to use but the rewards you get will depend on how often you purchase those star products and complete the missions.

You can read our full review of the Asda Rewards scheme here.

Iceland

Iceland has the Bonus Card scheme. Users can qualify for reduced prices for a bunch of different items, while you can also choose to ‘save’ money onto your account.

For every £20 saved, Iceland will top it up by £1.

You can then use your account balance to cut the cost of your shopping.

You can sign up online and use the app, or pick up a physical card in store.

Our verdict: The Iceland Bonus Card scheme is a useful way to save if you are a regular shopper, and to put some money aside for a big shop, likely at Christmas.

Lidl

Lidl Plus is the discounter’s first foray into the world of loyalty schemes and comes in the form of an app available on both Android and iOS.

Shoppers need to download the app to their mobile and then register with their personal details.

They will then be presented with a host of coupons that they can ‘activate’. 

Once you ‘activate’ a coupon within the app, you will have a limited period in which to use it before it expires.

To use the coupon, you need to scan your digital card in the app when you get to the till. 

You can also unlock coupons that offer money off your shop when you reach spending targets – find out more here.   

As well as offering the chance to save money at Lidl, you’ll also be presented with discount offers for partner retailers. Users can also read a digital version of Lidl’s weekly leaflet through the app. 

Our verdict: While Lidl Plus won’t offer a return on the money spent in-store, as is the case with other loyalty schemes, it will offer regular Lidl shoppers a little extra so is likely worth a try at least.

Marks & Spencer

M&S revamped its SPARKS loyalty scheme a while back after admitting the old version was too confusing.

However, what you actually get back from this new scheme is still far from obvious.

Every week, in every store, one shopper who swipes their SPARKS card at the till will get their shopping for free.

On top of this, shoppers are presented with special offers or treats based on their shopping, while some will receive special ‘gifts.’

A donation to charity is made on your behalf every time you shop too, while there are regular giveaways of money to spend at M&S whether in-store or online.

Sparks members are rewarded for purchasing hot drinks at an M&S café – and get every seventh drink free.

Our verdict: The SPARKS scheme is worth a try if you are a regular M&S shopper.

Morrisons

Morrisons has gone back to its Morrisons More scheme, having previously named its loyalty scheme MyMorrisons, and it offers a little of everything.

You get the chance to earn points when you shop, which can be turned into rewards. When you hit 5,000 points you qualify for a £5 voucher. The app also offers exclusive discounts and coupons, running from simple money off deals to reduced prices on items you’ve bought before. 

And then there’s also exclusive prices on certain items which you qualify for with the card.

Our verdict: The revamped Morrisons scheme tries to bring together the best of other loyalty schemes, combining lower pricing on select products with the chance to earn loyalty points. If you shop regularly at Morrisons you should definitely sign up for the scheme. 

Sainsbury's

Sainsbury’s is part of the massive Nectar card loyalty scheme, which allows you to pick up one point per £1 spent in-store and online, as well as one point for every litre of fuel purchased at Sainsbury's fuel stations (note: two points are worth 1p).

The loyalty scheme was revamped in late 2019 so that you’ll now get regular one-off, limited time offers, based on what you buy most frequently.

You can save the offers you like and ignore the ones you don’t, so you get more relevant offers (and help Sainsbury's learn more about your spending preferences, of course).

Crucially, your offers can only be viewed through Sainsbury's website or app, so you can now leave your physical Nectar card at home and simply scan using the app on your phone (available via Apple and Google Play).

However, the biggest change to Sainsbury’s loyalty schemes came last year with the introduction of Nectar Prices, which offer shoppers lower prices on specific items. All you have to do is swipe your card at the till.

These price cuts can make a big difference too ‒ studies from The Grocer last year found that while Sainsbury’s could be middle of the road when compared using regular prices, when Nectar Prices were used it could end up the cheapest supermarket of all.

Our verdict: The lower prices available through the Nectar Prices scheme add to the big selling point of the Nectar scheme that you can collect points at a wide range of retailers, allowing you to maximise your points on more of your spending.

There are also loads of ways you can dramatically boost the number of Nectar points you earn when you shop, as we explain here.

Tesco

First off, there's the standard (and free) Tesco Clubcard scheme, which lets you collect one point per £1 spent in-store and online. When purchasing Tesco fuel, you'll get one point for every £2 spent.

It’s also worth stressing that having a Clubcard (through the free or monthly subscription) means you can access Clubcard Prices and save money on certain items.

There are lots of opportunities to earn points through other Tesco products like Tesco Mobile and Tesco credit cards.

The Tesco Bank Purchases Card, for example, allows you to earn five points for every £4 spent in the supermarket and on Tesco fuel and one point for every £8 spent elsewhere. Each point is worth 1p and for every 150 Clubcard points, you get £1.50 in Clubcard vouchers.

You can also boost the value of your points with selected partners, as we explain in our guide to boosting Tesco Clubcard points.

Tesco Clubcard Plus

Tesco Clubcard Plus is a monthly subscription service that offers additional discounts and perks.

It costs £7.99 and the headline offer is a 10% discount on your grocery shopping.

Crucially, this has a number of limitations. It is:

• only available if you shop in-store (not online or Click & Collect);

• limited to two big shops a month;

• capped at a maximum value of £200 per shop.

There are a few other perks like extra data on your Tesco mobile deal and savings on Tesco clothing, as we explain in our Tesco Clubcard guide, but the food discount is really the main reason to sign up. 

If you do a couple of big shops in-store each month, this scheme will save you a small fortune. For example, two £150 shops a month will save you £30, or £22 once you subtract the monthly charge. 

But if you do numerous small weekly shops or mainly shop online, you'll get far less benefit and could well end up losing money.

Remember the monthly fee adds up to almost £100 a year so you need to be making good use of it to justify upgrading to Clubcard Plus rather than using the free version. 

Whichever version you opt for, you also get access to Clubcard Prices. Yep, you guessed it, another supermarket offering lower prices to those with a loyalty card on specific items. It was one of the first big supermarkets to introduce such a programme, and it’s been pretty effective in winning back shoppers. 

Our verdict: The standard Clubcard scheme is risk-free and there are plenty of opportunities to pick up points and you can boost their value when you spend them at, for example, retailers.

The introduction of Clubcard Prices only adds to its appeal.

Clubcard Plus is a great idea for those who do at least two big shops in-store each month, but for others, the benefits will be far more limited. Do the sums before you sign up, but as a general rule, aim to spend at least £80 on a qualifying food shop to cover your costs.

Waitrose

Finally there’s MyWaitrose. Members benefit from personalised discount offers, as well as free coffees from self-serve machines in store when they make another purchase.

There are also exclusive competitions for members. 

You also get a free copy of the monthly Waitrose & Partners Food magazine and access to discounts at the Waitrose Cookery School.

Our verdict: The Waitrose card is worth having if you have a Waitrose near you and you shop there regularly as some of the rewards are instant. But with no points system, you’ll have to keep a close eye on the discounts and make sure to use them to get the most out of the scheme.

Are cashback credit cards better?

Cashback credit cards are generally seen as a better alternative to schemes that offer loyalty points or rewards.

This is because you have the freedom to spend your cashback wherever you like without any limitations while earning cashback on all your purchases.

But cashback cards should only be used as a way to earn rewards as these often have a higher APR than most standard credit cards.

To use them efficiently, you should spend as normal on your cashback card, and then pay this off at the end of each month.

This means you'll get all the rewards of the card, but you won't have to pay any interest.

If you won't remember to pay the card off each month, then set up a Direct Debit to do this automatically from your current account.

Do you use loyalty schemes, and which one do you think offers the best value for money? Let us know in the box below.