Tesco to slash Clubcard point scheme
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Tesco has confirmed it will be slashing the value of its discount voucher scheme for customers. It means the supermarket’s Clubcard points will be worth less in value in a couple of months’ time.
From June 14, Clubcard points will be worth twice their value when cashed in by customers instead of three times their value as they are currently.
Shoppers with a Tesco Clubcard get one Clubcard point for every £1 they spend on purchases.
As people continue to shop, points are accumulated which can be exchanged for Clubcard vouchers.
These vouchers can then be used to get discounts in Tesco stores or used to pay for day trips or meals in restaurants.
It should be noted that shoppers will still get three times the value of Clubcard points until June 13, 2023.
This announcement by Tesco follows moves by other retailers, including Boots and Sainsbury’s, to cut the value of their loyalty schemes.
Alessandra Bellini, the supermarket’s chief customer officer, cited “keeping product prices low” as the reason for the slashing of the Clubcard point system’s value.
Consumers have been forced to contend with rising inflation which hiked prices in supermarkets exponentially over the last year.
The latest Consumer Price Index (CPI) rate of inflation for January 2023 came to 10.1 percent.
While this is extremely high in comparison to years past, this figure follows three consecutive months of the rate dropping
This follows the CPI rate reaching a record 41-year high in October 2022 and exceeding 11 percent.
Despite this change to the Clubcard, Tesco confirmed it would extend the time period rewards would be valid from six to 12 months.
Despite this, Walid Koudmani, chief market analyst at XTB.com, described the news as a “disappointment” for shoppers.
He explained: “Tesco’s decision to slash Clubcard rewards at a time when the retailer’s prices have been increasing, in some cases significantly more than competitors, might prove to be quite risky as consumers react with disappointment.
“The company’s decision to reduce this incentive which has brought a wide number of customers to its stores at a time when the economy is contending with a cost of living crisis could have noticeable effects on demand as many could be seeking cheaper alternatives now that one of the main incentives is gone.”
In a statement, Tesco said: “We’re making this change to the scheme to make sure we can continue to provide a wide range of rewards that meet the needs of all our Tesco Clubcard members while keeping prices low for everyone.
“Tesco Clubcard continues to have the biggest and most generous Reward Partner scheme with access to over 100 Partners at two times your Clubcard voucher value.
“To give you extra time to decide when to use your Tesco Clubcard vouchers with Partners, we’re extending the validity period on Tesco Clubcard Reward Partner codes ordered until 13 June, so that they’re valid for 12 months, rather than the usual six months.
“So don’t worry, there’s plenty of time to use them at their current value before we make the change.”
The changes to the Tesco Clubcard scheme will come into effect from June 14, 2023.
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