Tesco is pulling the plug on its Clubcard Fuel Save, which rewards spending on groceries with fuel discounts, in a move that paves the way for a radical shake-up of the loyalty programme.
Launched early in February 2013, Fuel Save was designed to incentivise long term loyalty by giving shoppers 2p off a litre of fuel for every £50 they spent.
But it comes at a heavy cost to Tesco. And with rival Sainsbury’s already halving the number of Nectar points it dishes out, the supermarket needs to compete harder on price to reclaim market share from discounters. Analysts believe that the Clubcard scheme is likely to come under very close scrutiny. Fuel Save will shut up shop at the end of August.
The move comes as the long-awaited bidding process for Tesco data company DunnHumby draws to a conclusion.
According to a report by Bloomberg, all the bids are now in, with WPP and General Atlantic’s joint bid among them. Other bidders include Advent International, Warburg Pincus and Permira Advisers, which it is understood has team up with Google.
The deal will give the buyer access to information on almost one billion consumers worldwide, although the unit’s original £2bn price tag has been slashed in half following the end of an agreement with US retail partner Kroger.
While this has opened up the opportunity to work with other retailers, in the short-term DunnHumby’s profitability is likely to fall below projections.
Now Google eyes up DunnHumby bid
Sorrell faces new DunnHumby rival
DunnHumby value slashed by £1bn
Experian woes give DunnHumby clue
Experian plots late DunnHumby bid
Callcredit profits soar 48% to £26m
Kroger deal frees up DunnHumby
Tesco DunnHumby sell-off imminent
WPP in pole position for DunnHumby
WPP eyes data deals as profits surge
Tesco U-turn over DunnHumby sale
WPP eyes bid for £2bn DunnHumby
DunnHumby suitors tap up Keith Mills