Mixed messages over success of Tesco offer
Two new surveys give conflicting messages over the success of Tesco’s double points offer on its Clubcard loyalty scheme.
According to market research company Nielsen the offer has helped to increase customer spend per visit at the UK retailer. However, the latest data from TNS Worldpanel indicated Tesco was trailing its three main grocery rivals
According to Nielsen, Tesco’s sales sales growth has also improved against its main rivals. The report said that spend-per-visit at Tesco had increased by up to 5% since it introduced the double points offer on Clubcard in August.
Tesco’s sales growth was also up at 5.4% in the four weeks to September 5, more than the 4.7% growth at rival J Sainsbury.
Tesco, the UK’s biggest retailer, continues to trail Asda and Morrisons where sales growth was 5.7% and 8.8% respectively.
In the 12 weeks to September 5, Nielsen found sales growth at Britain’s major supermarket groups was 4.5%, falling from levels seen earlier in the year as food price inflation moderates.
Sales volumes, however, increasing by 2.8% in the four weeks to September 5, partly due to heavy promotional activity by the supermarkets and also improving confidence among shoppers, Nielsen said.
However the latest grocery market share data from TNS Worldpanel showed that Tesco trailed the market and registered the lowest growth compared to rivals J Sainsbury, Asda and Morrisons. Tesco’s sales rose 4.6% while the market increased by 5.2% in the 12 weeks to September 6.
TNS Wordpanel says it is too early yet to assess the impact of Tesco’s ‘Clubcard 2’ offer within this 12-week period.