How Your Grocery Store Loyalty Card Could Be Costing You Money — and What To Do Instead
Written by
Cynthia Measom
Edited by
Levi Leidy
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Grocery store loyalty cards promise discounts and special offers, but some are actually designed to make consumers spend more, not less. Instead of helping you save, they use tactics and pricing structures that can increase your total spending over time.
Find out how your grocery store loyalty card could be costing you and what to do instead.
They Offer ‘Deals’ To Entice You To Buy More
Many loyalty programs encourage shoppers to buy products they wouldn’t normally purchase. For example, exclusive deals — especially those tied to coupons that expire quickly — can make shoppers feel an urgency to purchase something just because it’s on sale.
What to do instead: Only take advantage of deals that are connected to products you normally buy. An exception might be if there’s a deal for a product you were planning to try, which actually could help you save money.
Your Shopping Habits Are Used To Get You To Buy More
Maybe you didn’t realize it, but every time you scan your loyalty card, the store tracks what you buy, how often and what time of day you shop. That mix of data allows stores to customize offers to get you to spend more.
What to do instead: Ignore offers or deals that aren’t directly tied to your shopping list, including those like “buy two, get one free,” unless you can clearly benefit from buying extra. For example, a “buy two, get one free” on something that your family rarely eats or is perishable isn’t a justification for spending more just to get a free item.
The Savings Aren’t Always Real
While loyalty card prices appear lower, non-member prices are often inflated, which makes discounts look more generous than they really are. Another store could be selling the same product for close to a “loyalty card” price without requiring shoppers to sign up for a loyalty program.
What to do instead: Check prices on items you buy both logged in and out of your grocery store’s app. Compare those prices to the same items at a couple of other stores to see if the loyalty card discounts are deals or just marketing. If non-member prices elsewhere are the same or lower, your loyalty card isn’t saving you anything.
Signing Up Comes With Hidden Costs
Signing up for grocery loyalty programs may also compromise your privacy, according to Consumer Reports. In a recent study, CR found that Kroger was selling data it collected from shoppers enrolled in its loyalty program to other companies for their marketing and advertising purposes.
What to do instead: Research grocery loyalty programs before signing up. Avoid any that have a reputation for selling shoppers’ data.
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