Tesco to relaunch Clubcard scheme with £150m campaign

Tesco will kick off a drive to wrest back customers from its big three grocery rivals during the recession with a £150m relaunch of its Clubcard next week, the biggest change to its loyalty card scheme since it launched 15 years ago.

The UK's biggest supermarket said it hoped to attract 1 million new customers to its loyalty card, bringing its total to 16 million, which is about one in two UK households. The relaunch next week will enable customers for the first time to exchange their Clubcard vouchers for double value rewards tokens in store and online on a wide variety of products, including nappies, clothing, toys, cosmetics and Tesco Mobile top-ups.

Carolyn Bradley, the UK marketing director at Tesco, said: "In the current market when people are shopping around for bargains loyalty is more important than it has ever been."

The relaunch comes at a time when Tesco has been losing market share to its big three rivals, J Sainsbury, Morrisons and Asda, although the world's third largest retailer claims it has stemmed the loss of sales to the discounters Aldi and Lidl in the UK. For the 12 weeks to 20 April, Tesco sales were up 4.6 per cent, behind Sainsbury's 8.1 per cent gain, Asda's 8.0 per cent and Morrisons' 7.4 per cent, according to TNS Worldpanel. Of its three rivals, only Sainsbury's, which is part of the Nectar scheme, has a loyalty card.

Previously, Tesco customers could only spend Clubcard vouchers at face value in its stores and online or increase the value by up to four times by exchanging them for deals with its partners, such as operators of Airmiles, theme parks or restaurants. But now a customer will be able to exchange £5 of Clubcard vouchers for £10 of double reward tokens and buy a women's jeans and T-shirt outfit for £10, for example.

For the designated double-up product categories, customers can exchange their vouchers for reward tokens at any time, but then have to use them within three months. However, for certain wine and gardening products, they have to exchange the vouchers by 30 September 2009 and spend the tokens before 30 December.

David McCarthy, the consumer analyst at Hobart Capital Markets, said: "We had been hoping that the Club Card relaunch would be a major innovation that would help Tesco regain the initiative, but overall we are disappointed. It is true that if a customer has vouchers now, he or she will be able to get double value immediately on many items. The heavy promotional launch will help short-term sales, but we are unconvinced that this campaign will lead to any change in underlying trends."

Tesco will launch "Clubcard double-up" on Monday with a TV ad campaign fronted by the actress Fay Ripley, best known for her role in the television series Cold Feet. The grocer operates Clubcard in four countries globally.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Lou Reed distorted the truth about his upbringing, and since his death in 2013, biographers and memoirists have added to the myths
musicThe truth about Lou Reed's upbringing beyond the biographers' and memoirists' myths
Ed Miliband received a warm welcome in Chester
election 2015
Life and Style
Apple CEO Tim Cook announces the Apple Watch during an Apple special even
fashionIs the Apple Watch for you? Well, it depends if you want it for the fitness tech, or for the style
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders
Heston Blumenthal to cook up a spice odyssey for British astronaut manning the International Space Station

UK's Major Tum to blast off on a spice odyssey

Nothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
John Harrison's 'longitude' clock sets new record - 300 years on

‘Longitude’ clock sets new record - 300 years on

Greenwich horologists celebrate as it keeps to within a second of real time over a 100-day test
Fears in the US of being outgunned in the vital propaganda wars by Russia, China - and even Isis - have prompted a rethink on overseas broadcasters

Let the propaganda wars begin - again

'Accurate, objective, comprehensive': that was Voice of America's creed, but now its masters want it to promote US policy, reports Rupert Cornwell
Why Japan's incredible long-distance runners will never win the London Marathon

Japan's incredible long-distance runners

Every year, Japanese long-distance runners post some of the world's fastest times – yet, come next weekend, not a single elite competitor from the country will be at the London Marathon
Why does Tom Drury remain the greatest writer you've never heard of?

Tom Drury: The quiet American

His debut was considered one of the finest novels of the past 50 years, and he is every bit the equal of his contemporaries, Jonathan Franzen, Dave Eggers and David Foster Wallace
You should judge a person by how they peel a potato

You should judge a person by how they peel a potato

Dave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Beige is back: The drab car colours of the 1970s are proving popular again

Beige to the future

Flares and flounce are back on catwalks but a revival in ’70s car paintjobs was a stack-heeled step too far – until now
Bill Granger recipes: Our chef's dishes highlight the delicate essence of fresh cheeses

Bill Granger cooks with fresh cheeses

More delicate on the palate, milder, fresh cheeses can also be kinder to the waistline
Aston Villa vs Liverpool: 'This FA Cup run has been wonderful,' says veteran Shay Given

Shay Given: 'This FA Cup run has been wonderful'

The Villa keeper has been overlooked for a long time and has unhappy memories of the national stadium – but he is savouring his chance to play at Wembley
Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own