In the past year, the prices of food and drink rose at the fastest rate in more than 45 years, with the Office for National Statistics dating the last time we saw a higher rate back to 1977.
As Tesco Clubcard reduces their points multiplier from 3x to 2x this week, limiting the amount shoppers can spend on rewards, Brits will be looking to get money-savvy with their grocery shopping.
Given the changes above, many will be questioning whether they might be better off making use of the loyalty schemes offered by other supermarkets. But what are the pros and cons of each?
Tesco Clubcard
Pros:
Can earn points on all purchases in-store, online, at Tesco petrol stations and through Tesco Mobile and Tesco Bank.
Each point is worth one penny.
Can be redeemed for vouchers with various Reward Partners like Disney+, Virgin Atlantic and Thorpe Park.
Cons:
Vouchers are only sent out four times a year (February, May, August & November).
The value of points redeemed for Reward Partner vouchers has been reduced from 3x value to 2x.
Sainsbury’s Nectar Card
Pros:
Points can be collected from over 300 brand partners like Argos, eBay and Esso.
Points can also be spent with partners.
Regular bonus point events and personalized offers.
Cons:
Each point earned from shopping in-store at Sainsbury’s is worth 0.5p, making it worse value than a Tesco Clubcard.
Not all purchases qualify for points.
Morrisons More
Pros:
Earn one point for every penny spent on qualifying purchases, or five points for every litre of fuel.
Receive a £5 voucher when you hit 5,000 points.
Bonus offers and coupons tailored to your shopping habits.
Cons:
Can only earn points on fuel and ‘selected products’.
Points can’t be redeemed until you hit 5,000.
Asda Rewards
Pros:
Build up a ‘cashpot’ rather than points, which can then be converted to vouchers.
‘Star products’ and ‘missions’ offer extra ways to save.
Vouchers last three months after you’ve created them.
Cons:
Only available via the app.
Only have six months to convert cashpot earnings into vouchers before they expire.
With food inflation reaching 19.2%, Lucinda O’Brien, expert at money.co.uk savings, has shared her top five tips for tackling your food shop on a budget.
Plan your meals in advance: Make a list of your main meals for the upcoming week. The key is to have a plan for when you'll utilise each item, as this means you avoid buying more than you need. You could try planning your meals for eight days rather than seven, but on day eight use up all the odd bits and pieces left in the fridge. If you allocate money for groceries on a weekly basis but only spend every eight days, by week eight you will have saved a "spare" week's worth of grocery costs that you may put into your savings account.
Set a budget: Making the most of your money when it comes to the food shop can be done through creating a budget. You can start by making an estimate of your three-month spending on food, reviewing your transactions and statements will help you do that. It may sound simple but allocating a specific amount for food each time you create a budget, such as once a month when you get paid will help you save substantially on groceries every month. However, it's important to make sure your budget is realistic.
Think about when and where you’ll shop: Recently, the topic of comparing supermarket prices has received a lot of attention online. As many of us are flocking to budget supermarkets like Aldi and Lidl to reduce our food expenses, some claim that the more affordable selections are really at the more upscale supermarkets such as M&S. However, our findings show that Aldi came out cheapest in comparison to other supermarkets. To ensure that you are receiving the best value for your money, it is crucial to compare pricing at several supermarkets. You might also want to think about doing your weekly food shopping in the evening. Not only will it be quieter, but you might also be able to find some good markdowns. Additionally, full-size supermarkets offer better value than local convenience stores like Sainsbury's Local or Tesco Express.
Download money-saving food apps: As more and more people are worrying about the skyrocketing food prices, some may not be aware that you can find food for free through apps like Olio and Too Good To Go, which both work to reduce food waste. Olio is partnered with Tesco and their collections are normally around 8.30pm so you may discover some deals if you get online at 9pm. It may be worthwhile to check on popular holidays like Christmas, Easter or bank holidays because Tesco can have a tonne of leftover food. If you see something that you want, all you have to do is request it. Once you've been approved, just get in touch to set up a time to pick it up. You can also keep 10% of anything you collect yourself from Tesco if you sign up to be a Food Waste Hero. Be sure to sign up for supermarket loyalty cards like the Tesco Clubcard and Sainsburys Nectar card. The new Nectar Prices scheme now offers discounts on 300 everyday items. This can currently save you 51% on coffee, 32% on beans and 22% cereal along with further staples of a weekly shop.
Get cashback with your bank account: With so much competition, banks have to work hard to keep their customers. Most will offer perks such as cashback debit cards, which give you the chance to earn some money on your day-to-day spending and bills. Which shops trigger cashback rewards will depend on your bank and the amount you’ll get back depends on the individual offer at the time. The easiest way to check where you can cash in is by looking at the terms and conditions of your current account by visiting your bank’s website.
