Tesco has announced major changes to how its Clubcard points work in a move that has left some customers disappointed.
The UK’s biggest supermarket has brought in several changes to the loyalty scheme over the last 12 months, including moving to paperless coupons, personalising vouchers, and changing the terms of its meal deals. In light of the cost of living crisis, it has also been issuing warnings for customers to use any vouchers they have before they expire.
It has also recently announced changes to its home delivery charges for online shopping. Meanwhile, it’s Whoosh rapid delivery service has expanded to more towns and cities.
It comes as several other retailers alter their card schemes. Boots has recently announced its Advantage Card scheme will become less generous later in 2023, while Asda, Morrisons and Waitrose have all revamped their respective loyalty systems in the last 12 months, as they changed their pricing strategies.
These moves have all come against a backdrop of soaring food prices, which have been one of the biggest pressures on household incomes since the inflation crisis began. Supermarket value ranges have seen some of the biggest cost increases, analysis by NationalWorld has found.
So, how is Tesco changing its Clubcard system - and what does it mean in practice? Here’s everything you need to know.
How is Clubcard changing?
If you’re a Tesco Clubcard member, you may have received a message over the last few days telling you it is changing how its points convert into vouchers with its ‘Rewards Partners’.
These are businesses who offer to turn your Clubcard Points into larger savings. High street chains like Pizza Express, Disney+ and Legoland all take part, with Tesco offering more than 100 such partners in total.
At the moment, you can triple the value of your Clubcard points with most of Tesco’s partner firms. So, for example, £5 in Clubcard Points could get you a £15 voucher at a Zizzi branch.
But from 14 June, you will only be able to double your points, making the scheme much less lucrative. If you have taken out a code with a reward partner since 17 March but before 13 June, it will be valid for 12 months rather than the customary six (apart from with Disney+, with whom vouchers have to have been redeemed by 10 August). For Virgin Atlantic Flying Club members, the scheme will change from 21 July.
What has Tesco said?
In an email sent to customers this week, Tesco’s chief customer officer Alessandra Bellini said the move was part of a bid by the supermarket to “make sure we can continue to provide you with a wide range of exciting rewards, whilst keeping our product prices low.”
She insisted “you can still make great savings on everything from family fun, dining out, cinema trips and more” with Clubcard, which she said “continues to have the biggest and most generous Reward Partner scheme”. Ms Bellini urged people with any questions to visit the FAQs page on Tesco’s website.
Tesco says its top 25% of users also make average savings of £351 a year by using Clubcard to access 8,000 weekly deals in its stores. However, the loyalty scheme - which Tesco monetises by selling data on your shopping habits - has been criticised by some shoppers for the discounts it offers.
How have customers reacted?
Tesco’s announcement has been heavily criticised on social media.
Also referring to the recent announcement that the Boots Advantage Card's offers would become less generous, one Twitter user posted: “Tesco & Boots are reducing the value on their Loyalty Cards. Considering they are all ripping us off by constantly increasing their prices, they should be Increasing the rewards to customers not decreasing.”
Another wrote: “At 3x it was a good incentive for me to shop at Tesco. But I think I’ll go elsewhere now, hunt down cheaper food and save money that way instead. Poor decision @Tesco I think this will bite you in the long run.”
A third customer said: “I’ve been a #tesco customer for as long as I remember and looking at the current offers (if you can call them “offers”) they are cutting the prices by barely anything! Now to add insult to injury they are cutting their rewards! Shame on you!”
A Tesco spokesperson said: “Clubcard unlocks the best value from Tesco – from thousands of exclusive deals through Clubcard Prices, to money off your groceries and fuel, or accessing double the value of your vouchers with more than 100 Clubcard Reward Partners.
“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.”
How many Clubcard points can you earn at Tesco petrol stations?
Tesco has since announced another change to Clubcard that will also kick in from 14 June 2023. From this date, filling up at a Tesco petrol station will earn you fewer points.
Instead of getting a Clubcard point for every £2 spent on filling up your tank, you will get a point for every two litres you buy. With two litres of unleaded petrol currently costing an average of £2.93 and diesel prices currently sitting at around £3.25, it means you will have to spend more on fuel to earn Clubcard points.
The arithmetic changes if fuel prices fall below £1 a litre. Should this unlikely event occur, you will get more Clubcard points than you currently do. According to RAC figures, the last time petrol hit this level was in May 2020, and the last time diesel cost that amount was in 2016.
Additional reporting by PA