Tesco and Sainsbury’s make millions off loyalty card data

LONDON – Tesco and Sainsbury’s, two of the biggest British supermarkets, make about £300 million (S$505 million) a year from selling information about their customers’ shopping preferences, London media reported.

The data collected from supermarket loyalty cards is sold to companies such as Channel 4, PepsiCo and Heineken, which then analyse consumer behaviour and make targeted advertising.

Most British supermarkets have some form of loyalty card programme. Tesco ramped up promotions through its Clubcard in 2023, while Sainsbury launched Nectar Prices in April, passing on discounts to customers with its Nectar loyalty card.

Customers’ personal data, such as names or addresses, are not shared, the Times said. 

Britain’s antitrust watchdog in November said it will investigate the two-tier pricing system developing in supermarkets as a result of loyalty programmes that it says can confuse shoppers. BLOOMBERG

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