Tesco doubles reward points
UK supermarket Tesco is doubling the number of points shoppers earn on its Clubcard loyalty scheme.
The offer starts on August 17 and follows the £150m relaunch of Clubcard in May. Analysts at Oriel Securities estimate the new offer, which is thought to be trying to claw back business lost recently to its major rivals, will cost £400m a year.
In June, Tesco posted a 4.3% increase in underlying Q1 sales, its best quarterly performance for two years.
However this failed to keep up with its three chief rivals – Wal-Mart-owned Asda, J Sainsbury and Morrisons – who have reported recent sales growth of 7.2% 7.8% and 8.2% respectively.
In the new promotion Clubcard holders will get two points for every £1 they spend across the store and online.
Vouchers can then be spent in store or online or exchanged for up to four times this face value figure – a potential maximum benefit of £136. Under the Tesco scheme, £34 in Clubcard vouchers would be enough to buy a return flight to Paris.
There are currently over 15 million active Clubcard members, and 13 million of these are due to receive money-off vouchers in their August statement.
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