Tesco caps Asda refund offer
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Tesco has been forced to cap an offer to reimburse shoppers that find goods cheaper at rival Asda after receiving a flood of refund requests.
Last month, the supermarket promised to “double the difference” on any items that can be found cheaper at Asda after launching a £200m price cutting drive.
Tesco has since been inundated with requests from shoppers claiming that they shopped for less at its rival. A £20 limit on payouts has now been imposed.
It is said that a website, www.pricecheck.logicalinternetsolutions.com, which points out which products are cheaper in Asda, helped lift the number of requests.
In a statement Tesco says: “A very small number of people have used PriceCheck just to seek out products which a competitor has on promotion and to make some money out of our guarantee.
“Fewer than one in 5,000 customers have been awarded vouchers over £20. We commend their ingenuity, but this isn’t why we set up the guarantee. So we’ve introduced a £20 limit.”
The two have been locked in a price war since the new year. Asda launched a “price guarantee” in January, promising to give shoppers a voucher for the difference if their basket was not 10% cheaper than Tesco.
YouGov Insight:
Tesco
- While 45% of British adults attribute Tesco’s success to its cheap, varied food choices and ability to create jobs wherever it goes, 43% feel that it is ’too powerful’.
- Despite the view held by many that Tesco is ’unfair’ - by pricing smaller opposition out of the market - YouGov SixthSense research reveals that 60% of UK consumers still shop at local stores at least once a week.
- YouGov SixthSense records an equal appeal for Tesco among socio-demographic groups
- Usage penetration is strongest in the North (41%) and weakest in London (24%)
- Homebase trails with 21% of shoppers saying they have bought gardening equipment, plants or garden furniture there in the past 6 months.
Click to read the YouGov Grocery Retail Market Report
Readers' comments (1)
Christopher Bingham | Fri, 25 Mar 2011 5:48 pm
we all know Asda is cheaper!
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