Doubts have been expressed about whether Tesco’s Clubcard 2 initiative has appealed to shoppers as hoped.
Oriel analyst Jonathan Pritchard said indications from Tesco suppliers are that customer response to the venture, which launched almost a fortnight ago and doubles the number of points shoppers earn on purchases, has been “slow”.
Pritchard said: “One would have expected an immediate spike up in sales given the level of advertising and the extra 1% of margin giveaway, but two separate FMCG suppliers have reported to us that they have seen no change in trend as yet.”
He conceded that it is still early days for Clubcard 2 but said worries remain.
Pritchard observed: “We sense that customers are becoming a little confused. Tesco is pushing its discounter ranges, its promotions, the loyalty card and trying to tap in to any return to favour of premium brands – all at the same time. The message is not clear.
“Tesco’s like-for-like is the worst of the big four and we expect it to stay thus: Clubcard 2 has to work and if it doesn’t, then Tesco will be strategically compromised in the UK.”