High street pharmacy giants Boots and Superdrug have been issued a stern warning by consumer watchdog Which? over what has been described as "dodgy" pricing tactics within their loyalty schemes. The investigation, which highlights concerns for shoppers at branches across the UK including those in Birmingham, reveals that hundreds of member deals could be misleading customers.
Investigation Uncovers Widespread Pricing Issues
The consumer group conducted a thorough analysis of loyalty promotions at both Boots and Superdrug, identifying 119 deals from Boots and 162 deals from Superdrug that potentially mislead shoppers. These findings come despite both chains offering customers discounted prices through their free loyalty programmes, which are designed to reward regular shoppers.
How the Pricing Tactics Work
According to Which?'s guidance on loyalty price promotions, deals are most likely to be misleading when the non-loyalty price during a promotion period is higher than the selling price immediately before and after the promotion. This practice creates an artificial sense of value for loyalty members while potentially overcharging non-members.
Boots Example: The investigation highlighted the Boots Avène XeraCalm AD Lipid-Replenishing Cream Moisturiser (200ml) as a concerning example. During the loyalty promotion, this product was priced at £16.50 for loyalty members while non-members paid £22. However, before this deal, the same item was available to all customers at £17.60 with a 'was' price of £22. Immediately after the loyalty promotion ended, it returned to an offer price of £16.50 for everyone.
Superdrug Example: Similarly, Superdrug faced criticism for its Simple Refresh and Replenish skincare bundle, which was offered at £4.98 for loyalty members compared to £9.98 for non-members. Before this loyalty deal, the bundle was available to all customers at £4.80 (reduced from £9.98), and immediately afterwards, it was priced at £4.49 for everyone (again reduced from £9.98).
Consumer Protection Concerns
Sue Davies, Which?'s head of consumer protection policy, expressed serious concerns about the findings. "It's concerning that Boots' rival Superdrug seems to be employing similar dodgy-looking pricing tactics – meaning shoppers at two of the biggest players in the health and beauty sector are at risk of being misled," she stated.
Davies emphasised that such practices undermine consumer trust in loyalty schemes, which should genuinely reward customer loyalty rather than create confusing pricing structures that potentially disadvantage shoppers.
Company Responses
In response to the investigation, a Boots spokesperson said: "We have taken on board the report's guidance and have been working diligently to ensure all our promotions are aligned to it." This suggests the company is reviewing its pricing practices in light of the watchdog's findings.
Superdrug responded with a statement saying: "We always aim to offer value and savings to customers ensuring we are clear, fair and reward loyalty." The company maintains that its intention is to provide genuine value through its loyalty programme.
Broader Implications for Retail Sector
This investigation raises important questions about pricing transparency across the retail sector, particularly concerning how loyalty schemes operate. With both Boots and Superdrug being major players in the health and beauty market, these findings could prompt wider scrutiny of similar schemes operated by other retailers.
Shoppers are advised to remain vigilant when comparing loyalty prices against regular prices, particularly checking price histories where possible. Consumer rights organisations recommend that customers question whether loyalty discounts represent genuine savings or whether they're being offered artificially inflated regular prices during promotion periods.
The findings serve as a timely reminder for all retailers to ensure their pricing practices are transparent and genuinely benefit consumers, rather than creating confusion about actual value and savings.
