Tesco is offering members of its loyalty scheme discounts of up 50% on hundreds of products, marking a further escalation in the grocery price war.
From tomorrow, shoppers will be able to access exclusive deals on branded and own label products by scanning their Clubcard at the checkout or when shopping online. The ‘Clubcard Prices’ offer will include products from brands such as Carte D’Or, Birds Eye, and McCain. Over 200 frozen products will be included at launch, with more products across other categories added over the coming weeks.
Clubcard Prices were first introduced as part of Tesco’s Centenary celebrations in 2019. However, the retailer’s recent move towards an EDLP strategy is said to include plans to drop promotions unless they come under its loyalty scheme.
Tesco also confirmed today that it has now extended its Aldi price match campaign to over 500 own label and branded items, with the retailer acknowledging that value for money was becoming more important as the UK heads into what is expected to be a lengthy recession.
Morrisons and Asda also recently implemented reductions on hundreds of everyday items. The Big Four multiples are hoping they can prevent Aldi and Lidl gaining a further price advantage that accelerated their growth following the 2008/9 financial crisis.
Commenting on Tesco’s price reductions, the retailer’s Chief Customer Officer Alessandra Bellini, said: “We know that great value matters to customers more than ever before, that’s why, to reward our loyal customers, we’re offering everyone with a Tesco Clubcard access to hundreds of exclusive deals.
“We’re also offering everyday low prices on hundreds of products so that customers can get clear and consistent prices on the products they buy regularly.”
NAM Implications:
- Every little bit of lock-in helps…
- Tesco strategy clearly aimed at Iceland and the discounters.
- Watch this price-war space…
