In what appears to be another cost-cutting measure, Tesco is reducing the value of its Clubcard reward vouchers for the second time in five years.
Vouchers awarded by the supermarket’s loyalty scheme are currently worth triple their value when exchanged with more than 100 Reward Partners, including entertainment venues and restaurants. This was reduced from four times their value back in 2018.
Tesco has now emailed members of the scheme to say that as of 14 June, Clubcard vouchers will only be worth two times their value if exchanged at any of its Reward Partners.
A spokesperson for Tesco said: “Millions of people tap their Tesco Clubcard every time they shop, benefiting from access to more than 8,000 weekly deals on Clubcard Prices, which we’ve now rolled out across every part of our stores – so from food to clothing, Tesco Mobile to Tesco Bank, you can now find even more great deals.
“And with potential savings of up to £351 a year, more people than ever before are making the most of the immediate value that Tesco Clubcard offers.
“We are making a change to how members can use their vouchers with our Reward Partners, but they will still be able to unlock great value in the same range of ways as before.”
The move comes as supermarkets and other retailers seek to cut costs as they battle rivals for customers amid the cost of living crisis.
Earlier this month, Boots overhauled its Advantage loyalty scheme, introducing a discount on its own-label products while changing how members collect points.
NAM Implications:
- It might have helped had Tesco put the partner reduction in context.
- i.e. quantified the current usage, average loss per customer?
- Otherwise, there is a perception of a one-sided cut in value of the Clubcard.
- Time to quantify any foot-voting?
