Tesco have announced that they will doubling shoppers rewards through it’s Clubcard loyalty scheme starting from August 17 in a move that business analysts say could cost the supermarket a massive £400million a year.
The supermarket has already spent £150million re-launching the Clubcard in May this year, but rival stores in the top four UK supermarkets, Asda, Sainsbury and Morrisons have all shown better growth than Tesco in recent quarterly accounts.
The extension of the Clubcard loyalty scheme is seen as one way to win back business from rival supermarkets and should help Tesco re-assert itself as the top player, particularly with the back to school business and then the long run up to the Christmas period.
In June Tesco reported it’s best quarterly performance for two years, showing an increase in sales of 4.3%. However Asda, Sainsbury and Morrisons put the Tesco figures in the shade when recording their own sales growth of 7.2%, 7.8% and 8.2% respectively.
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