Fake Savings – Grocery Store Loyalty Cards

Almost everyone I talk to about grocery store loyalty cards say that they save them a bunch of money. So how do you resolve this with a widely quoted article by Katy McLaughlin of The Wall Street Journal that was written Jan 21, 2003. According to the article, consumers generally spend more money by shopping at grocery stores with store loyalty cards than at stores that don’t use them.

Basically, the article had shoppers shop at a store using its discount card, and then went to a nearby store that didn’t have a card and bought the same items. The result? In all five comparisons (Dallas, Chicago, Brooklyn, Atlanta and San Francisco) the shoppers ended up spending less in the gro

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