Ella Jackson’s Post

79% of the UK have a Tesco Clubcard. However, 59% of that population think supermarkets inflate their loyalty scheme savings. Retail Week recently asked consumer research firm Walnut Unlimited to survey 2,000 shoppers about their thoughts on supermarket loyalty schemes, and, as you can see, the results didn't read positively for retailers.   What does this mean for the vast number of Tesco Clubcard holders?   Grocery retail loyalty needs to work harder.   I posted previously that price-driven loyalty is lazy marketing. Still, in the UK, at least, everyone is jumping on the same bandwagon, believing that it is the optimal form of consumer activation in the current economic climate.   However, this also presents an opportunity for grocery retail loyalty experts to differentiate and enhance their loyalty proposition beyond price.   In an era where integrity is paramount to brands, do supermarkets risk eroding customer loyalty and damaging their reputation if shoppers feel duped or undervalued?   How can their brand and customer experience drive real loyalty rather than deal loyalty?   What do you think about your supermarket loyalty programme? #fmcg #loyaltyprograms #loyaltyrewards #customerexperience

Major supermarkets like Sainsbury’s, Morrisons, M&S, and Coop are following Tesco's lead by introducing exclusive discounts for loyalty scheme members. In turn, this increases popularity among price-conscious shoppers, according to research from Retail Technology Show (RTS). But despite the surge in member-only offers, consumers have concerns regarding data usage and dual pricing fairness. Continue reading: https://bit.ly/3UW6aEi #Supermarkets #RetailTech #RetailNews

“Consumers bought groceries from an average of 20.7 different retailers between March 2023 and February 2024 according to data firm Numerator, up 23% from the same months between 2019 and 2020. In addition to visiting more stores, shoppers are also traveling to cheaper ZIP Codes to shop and pursuing loyalty programs and promotions in greater numbers, retail analysts say.” #consumertrends

The Competition and Markets Authority (CMA) analysed around 50,000 grocery items on promotion and found that 92% offered genuine savings against the usual price, hence supermarket loyalty schemes do offer real savings, Britain’s competition watchdog confirmed #grocery #retail #ecommerce #ukeconomy #tesco #sainsburys #consumertrends https://lnkd.in/eGpw8MWJ

*As Lidl’s Market Share Surges, Asda Risks Being Caught In The Middle* Despite recent research highlighting shopper cynicism of retailer loyalty schemes, Kantar data released earlier this week confirms that Tesco and Sainsbury’s are major beneficiaries, with both growing their market share by 0.4ppts over the last 12 weeks. Lidl’s performance shows similar growth (in sharp relief to Aldi’s drop in share) and is posing questions for other multiples …. Lidl’s performance is perhaps even more impressive when you consider that their loyalty scheme, Lidl Plus, is frankly not quite as punchy as the two market leaders ***The question is how sustainable this will be for Lidl and how Aldi will respond.Price will be the short-term driver, of course, but Aldi and Lidl need to build loyalty as Tesco and Sainsbury’s gain share*** Finlay suggests that the real challenge is for Asda, who have lost 0.5ppts of market share over the last year. “Whilst being caught in the middle between the discounters and the market leaders, Asda’s forecourt convenience strategy is sound and will pay dividends in the long term, as it is a great showcase for the larger store formats for the uninitiated and potential Asda shopper. As for the short term, this may be trickier and more worrying, as it may trigger another race to the bottom.” ***Finlay noted that for all retailers, the holy grail is to build volume, value and long-term loyalty. Some are doing this well, although volume growth is currently the hardest hard nut to crack***

An interesting read on the importance of loyalty and reward schemes in convenience stores. 📖 In a world where consumers are constantly bombarded with advertisements and promotions, shoppers are increasingly looking for more than just a good deal. They want to feel valued, rewarded, and part of something bigger. 👨👩👧👦 💷 This desire for a sense of #community and earned value has paved the way for the rise of app-based loyalty and reward platforms. Be a part of the convenience value community! 💪 #loyaltyrewards #retail #conveniencestores #value #promotions #retailinnovation

Sainsbury's has delivered bumper profits this year, thanks largely to its Nectar loyalty scheme. It claims shoppers saved £12 on an £80 shop. But is it all gravy? In Issue 1 of Catalyst earlier this year, our Editor-at-Large, Lucy Handley, explored whether loyalty schemes were really delivering great savings to customers, or just another way to lock them in. With the growth of Retail Media in particular, that customer data is a goldmine to FMCG advertisers. In the feature, Lucy reveals: 💷 Shoppers prefer pounds, not points. Or sometimes prizes. 🛒 The Competition and Markets Authority has concerns that loyalty schemes make it difficult for consumers to accurately compare prices 🗝 Shopper loyalty is usually only as good as the next purchase If you're a CIM | The Chartered Institute of Marketing member, you can access the full article here: https://lnkd.in/eJS6yJhi #marketing #retail #loyalty #cmo

Killer graph illustrating Tesco's path from sales to profitability. A laser-like focus on value, data and their customers drove mightily impressive results in their last update. : • Group sales (exc. Fuel) up 7.4% to £61.5 billion • Core UK sales rose 7.7% on a like-for-like basis • Record operating profits of £2.8 billion ➡ Clubcard Impact: Tesco's Clubcard scheme now reaches over 22 million households in the UK, enhanced by exclusive member prices and additional perks. The extensive Clubcard data allows Tesco to offer a customised and enriching shopping experience. Notably, digital Clubcard scans have surpassed physical card scans in stores. ➡ Relentless focus on value: Tesco has maintained a strong commitment to affordability, facilitated by initiatives like Aldi Price Match, Low Everyday Prices, and Clubcard Prices. Tesco has been recognised as the most cost-effective full-line grocery store for 16 months running, capturing more market share even amid stiff competition. Additionally, the Tesco Finest range achieved a significant milestone, exceeding £2 billion in sales for the first time. ➡ Convenience is key: The company launched 87 new stores in 2023 and upgraded 389 more, including expanded non-food options featuring brands such as Paperchase and The Entertainer. Online sales continued to grow in double digits, with a 98.1% product availability rate, and the Whoosh delivery service now reaches two-thirds of the UK, with 74% of deliveries made within 30 minutes. The reach and digital proposition offers a diverse range of options for all consumers. ➡ Retail Media: Utilising its large scale, Tesco has built a specialised retail media group to enhance collaborations with advertising firms and suppliers, adding over 2,000 connected in-store displays, thus opening up new income avenues and establishing its presence in the dynamic retail media landscape. ➡ AI and Automation Investment: Tesco is channelling a substantial portion of its profits back into new technologies to foster growth and enhance efficiency. The company is deploying AI to tailor product selections specific to store demographics, and automation is central to its new fresh food distribution centre, improving logistical operations. #Tesco #Grocery #Retail

What’s in a number? When it comes to a race being the number one or first is all that matters, winning. But when you’re in business which race are you in and how do you keep the score? Knowing the score and having processes in place to improve them matter. Tesco didn’t change its profits by accident. They are focused. Are you focusing on the right things in your business? #profit