Tesco returns to vouchers after sales drop
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Tesco is running a press ad campaign promoting a loyalty voucher initiative in an attempt to win back customers after reporting “disappointing” Christmas trading last week.
The promotion is a move away from its recent price lead marketing under the Big Price Drop banner and uses the strapline “A Helping Hand from Tesco.”
Tesco is offering customers a £5 voucher for every £40 shop that can be redeemed against their next £40 shop. The ads appear in all national newspapers today (18 January).
Tesco’s move comes after the supermarket’s recent marketing strategy attracted heavy criticism from analysts and group CEO Philip Clarke admitted that the chain’s strategy before Christmas had failed.
Clarke said in last week’s trading update that Tesco had wrongly cut back on voucher activity before Christmas at the time when rivals were ramping it up.
The loyalty initiative mirrors a promotion run by Asda last year which also gave shoppers £5 off ever £40 spend in addition to its 10% cheaper price guarantee as a “Christmas bonus”.
Readers' comments (10)
Neil Hopkins | Wed, 18 Jan 2012 12:08 pm
Hmm sounds like several other major supermarkets.
And if these are being given out to anyone that rocks through the doors, Tesco need to do something cool with the Clubcard system (of which I'm a member) - otherwise this will devalue hugely.
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Anonymous | Wed, 18 Jan 2012 12:22 pm
Sainsbury's brand match against Tesco and Asda is working indeed then!
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Michael Rennett | Wed, 18 Jan 2012 12:41 pm
I think that Tesco made a big mistake when they moved away from their double points Clubcard promotion.
Their 'Big Price Drop' failed to attract the same attention from consumers and was heavily criticized in the press for effectively lowering prices that had only been raised weeks before.
With the double Clubcard points, every product gave a reward. With the 'Big Price Drop' only a selection of products were 'cheaper'.
Hopefully this new incentive will appeal more.
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Anonymous | Wed, 18 Jan 2012 1:55 pm
Tesco have got it wrong again, The ad: in the news papers today says, this week get £5 voucher for £40 spend, but if you look on web site this says from wednesday 18th--22nd, what happend to mon and tues this week, surely people who shopped on those days are entitled to a voucher, there are after all 7days in a week
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Elly Woolston, founder of {united} | Wed, 18 Jan 2012 2:19 pm
It's no surprise that Tesco is trying to rebuild faith with the nation. The supermarket stalwart has failed to gauge the need for a balance between value for money and quality. We are now in a world where there is unbalanced emphasis on the monetary value of products rather than the consumer’s values. With consumers now wanting value-added extras from retailers they can relate to, supermarkets need to lay out their values and beliefs for all to see. The likes of Sainsburys and Waitrose have certainly made important foundations in matching this balance with consumers’ desire for it. Consumers are beginning to reach a tipping point on price alone and retailers are going to have to do more than grapple with quick-win promotions.
Elly Woolston, founder of {united}
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Linda Highton | Wed, 18 Jan 2012 5:45 pm
I think the ad is misleading. "Simply spend £40 at Tesco THIS WEEK and receive a £5 off voucher...." Surely this should apply all week. As Anonymous states there are 7 days in a week. I spent £86 yesterday with no voucher. Customer Service at my store say this offer only starts today but they have received complaints that have been forwarded to Head Office. Come on Tesco!
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Nigel Adams | Tue, 24 Jan 2012 6:25 pm
I agree with Linda Highton about the offer being misleading, but in a different way!
The offer ad states: "£5 off your next week's shop when you spend £40".
This is NOT TRUE!
You have to spend £40 to get a £5 voucher and then spend ANOTHER £40 to use the £5 voucher, i.e. You must spend at least £80 to get £5 discount! Half the ad promise!
Surely this should be investigated by ASA?
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Brenda Frost | Tue, 31 Jan 2012 4:27 pm
I feel really misled tesco sign in store says spend £40 in store today receive £5 off your next weeks shopping small print says terms and conditions apply nowhere on their instore ad do they say your next weeks shop has to be £40 it is only when you have paid for your shopping and get your voucher does it tell you this. Went to customer services who agreed it was badly worded but that was down to head office so I phoned them but of course not interested.
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simon smith | Sat, 4 Feb 2012 1:22 pm
I am very disappointed in tesco,I had gotten used to the double points and extra food vouchers with my clubcard statement and rarely spend more than £25.00 a week so can't take advantage of the £40 spend voucher,thanks a lot tesco,I am now more inclined to use asda which always seems to have better prices,plenty of offers and modern attractive stores plus much friendlier staff.
I believe tesco has only held its number one spot because of the fact that it has more shops in more convenient place's (the only reason I have used it this far) but the other supermarkets are now expanding and tesco will have to change its ways if it wants to keep its customers....
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Rod Barter | Tue, 6 Mar 2012 3:46 pm
Why give £10 vouchers off £30 spend each week over a four week, period. We know for a fact of several Co.Op customers buying £30 of goods at Tesco, then proceeding to Co.Op for the balance of their weekly shop. Meanwhile I who spend approx. £90 per week, get nothing.
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