Tesco is staying true to its pledge to put Clubcard data back at the heart of its business by ditching coupons in the national press to concentrate on targeted offers to its 15 million loyalty scheme members.
The move follows the launch of a TV campaign last week for Tesco Bank, specifically designed to promote discounts to Clubcard members.
The retailer, which reports interim results on October 3, is using more personalised coupons linked to products that customers buy, rather than tempting them to buy other brands, according to chief executive Philip Clarke.
Conceding that the company still has “a long, long way to go”, Clarke told journalists at Tesco’s newly- renovated 42,000 square feet (3,902 square meter) superstore in Bishop’s Stortford: “We have only just begun.”
The chief executive is spending £1bn overhauling the UK business with more staff dedicated to fresh food, new own-brand ranges such as Everyday Value entry-price products, and services to help customers monitor their spending and check out of the store faster.
Same-store sales have declined for the last four quarters, while its market share slipped to 30.8% in the last three months, according to Kantar Worldpanel.
Clarke said Tesco is being guided by its Clubcard data to determine range and space layout of each store. “Ranging was about store size, now it’s about demographics,” he said.
Meanwhile operations strategy and business director David Hobbs added: “We’re really pleased that we’re starting to see the green roots of progress.”
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