Tesco cuts worth of spending vouchers
Tesco is curbing the rewards offer in its Clubcard loyalty scheme by reducing the value of spending vouchers from four times face value to three times. It will continue its ‘double’ offer on collecting points.
The amendment comes into effect on December 6 and is being done, says the company, to allow it to introduce more companies you can spend Tesco points with.
Tesco says the cut is vital to ensure the scheme is sustainable bearing in mind that it will continue to offer customers two points per pound on spending at the store and online, as it has done since August last year.
Prior to the start of that offer, collectors got one point per pound spent. While technically a promotion, Tesco says it has no plans to end the ‘double points’ deal.
One point is worth 1p to spend at Tesco, though points can be exchanged for more valuable rewards from non-Tesco retailers.
Special offer rewards
Taking a hammering are the exchange vouchers for rewards such as a meal out or a cross-channel ferry trip. For example, currently a £10 Tesco voucher turns into a £40 P&O or Pizza Express voucher), this will fall to three times (eg £10 will equl £30) from December 6.
Other offers where the value of the reward is dependent on the product will also drop. For example, where £3 in Clubcard vouchers gets you one adult Cineworld token, you will need £4 under the new regime.
Tesco cut the number of BA Executive Club miles you can earn in September from 600 per £2.50 of Clubcard vouchers (equal to 250 points) to 500.
It also cut the number of Airmiles. A Clubcard holder will now earn 50 miles per £2.50 of vouchers compared to 60. at the same time.
Carolyn Bradley, Tesco UK marketing director, says: “Part of the quid pro quo in keeping double points is we have had to make some adjustments to the Clubcard scheme to make it sustainable, which means we have had to alter the exchange rate.”
Those buying petrol from Tesco will also see a fall in the number of points collected from one point per £1 spent to one point per £2.
While this is a blow to customers in the run up to Christmas, Tesco points out that reward savers are still better off under the post-6 December regime than prior to the double points launch in summer 2009.
Where a £100 spend would have earned customers £4 in rewards (when quadrupled) before double points, it will get them £6 in vouchers under the ‘three times’ exchange rate (compared to £8 now).
Finally, Tesco is recognizing the power and efficiency of the internet, and says it is developing an online Clubcard account system, similar to internet banking, to allow it to send vouchers via the internet rather than by post. This will be ready at some point next year.
Martin Lewis, of MoneySavingExpert.com comments: “For the last couple of years Tesco points chasers have never had it so good with Tesco doubling the amount of points you get – then quadrupling their value for those in the know.
“Now the millions of chasers across the country will let out a collective groan at what is a set back, though not a killer. After all, the amount you can redeem per pound of spending is still higher than prior to Tesco doubling up points.