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UK first claimed as Clubcard holders pay as little as half of what other customers pay in-store at Tesco

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Clubcard holders could pay as little as half the amount that other customers at Tesco pay over the coming month in a promotion that the retailer says is the first time that any UK grocer has offered loyalty card holders lower prices at the checkout.

Starting today, customers who tap or scan their Clubcard at the till will pay between 15% and 50% less on a selected range of products at Tesco, from coffee and pet food through to televisions and clothing. Clubcard holders will, for example, be able to buy 100g of Nescafe Espresso Instant Coffee for £2.24 rather than £4.49, a Landamann Grill Chef three burner BBQ for £100 rather than £200, or a Sharp 40 inch HD TV for £199 rather than £269.

Online customers will get discounts automatically, and they will be shown on their customer delivery note. Shoppers can download the app while they are in store and register before getting the points when they go through the till. The promotion runs until May 26 and is part of Tesco’s Centenary celebrations. 

Alessandra Bellini, Tesco chief customer officer, said: “Clubcard continues to be the most rewarding loyalty scheme in the sector. As we are celebrating 100 years of great value, we wanted to say a big thank you to our millions of loyal Clubcard customers with special lower prices just for them.”

Tesco launched the Clubcard in 1995 and updated it in 2017 through a contactless card that customers can tap at the checkout to add points. Customers can also sign up to the Clubcard while they shop in store, via the Tesco Clubcard app, and can download their vouchers into the app. As a result of the improvements, the number of people using the Tesco Clubcard increased by 34% between 2017 and 2018. 

Shoppers get one point for every pound spent (or £2 on fuel) and can redeem them either for money-off vouchers to spend on groceries, or for rewards through partners including Pizza Express and Cineworld. 

The promotion is part of a wider range of price cuts across Tesco in order to mark its hundredth anniversary. In addition, products from Tesco’s low-cost Jack’s chain will also appear in branches of Tesco for the first time.

Our view: This initiative looks a lot like Amazon Prime, and its members-only special offers during Prime Day and in the run-up to Christmas. But it’s interesting because it’s in store, for what Tesco says it the first time in a UK supermarket, as well as online. As with Amazon, we’d expect to see the move drive a surge in Clubcard sign-ups at Tesco – and in return for these relatively limited and short-term price cuts, Tesco will benefit from data giving new insights into the way that its customers shop across its channels. 

Image courtesy of Tesco

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