Tesco Clubcard promotions hurt independent stores
The deep discounts launched last month are non-redeemable at Tesco Express sites
The promotion launched last month offers Tesco loyalty card holders deep discounts on a range lines. It is not redeemable in its Tesco Express convenience sites.
Shop owners said the promotion was affecting their ability to compete. One retailer, who asked not to be named, said: “This could put me and other retailers in jeopardy. A bottle of Baileys, for example, is £6 cheaper for Clubcard holders than it is elsewhere.”
betterRetailing analysed a basket of goods on the Tesco Clubcard promotion. Booker’s came to £33.57, compared to £23.67 from Tesco. The items were Cathedral City Mature Cheddar 350g, Ben & Jerry’s Cookie Dough ice cream, McVitie’s Dark Chocolate Digestives 266g, Jack Daniel’s whiskey 70cl and Cheerios 375g.
A Booker spokesperson said goods were bought “in parallel for Booker and Tesco where possible” and said being part of Tesco had given independents “greater choice, better prices and improved quality”.
The spokesperson explained: “By being part of the bigger group, the range of ‘retail wins’ could deliver up to £10,000 extra cash profit for customers.
“We are sorry to hear of these customers’ concerns and will happily pick up with them directly.”
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