Tesco braced for backlash as Brand Guarantee is axed

tesco 414Tesco is risking yet another customer revolt after announcing plans to scrap its Brand Guarantee scheme, which gives customers an instant refund if the branded items they buy cheaper at Asda, Morrisons or Sainsbury’s.
The supermarket giant insists take up of the programme, which launched in 2015, has virtually dried up, claiming it is only used by fewer than one in eight customers.
However, with Tesco Clubcard having over 16 million members, that still equates to over 2 million people, many of whom have already taken to social media to vent their anger.
Tesco faced a similar backlash when it announced it was slashing the value of Clubcard Boost rewards, an outcry which led to the changes being delayed by five months.
This time, Tesco chief customer officer Alessandra Bellini seems to have already made up her mind. She said: “Since Brand Guarantee launched, we have continued to invest in simpler, lower everyday prices. As a result, the scheme is far less relevant for our customers today, and so we are withdrawing [on July 16] it as we focus on offering customers even more straightforward value for money at the shelf edge.
“In recent weeks, we’ve already reduced the prices of over 260 popular products, including own brand and branded favourites, and we’ll continue to work hard to offer our customers great quality food at great prices.”
Sainsbury’s ditched its Brand Match scheme in 2016, after five years. At the time, it said the change in strategy would allow the company to plough the money into lower regular prices on “products that matter most” to its shoppers.

Related stories
Customer backlash forces Tesco to delay Clubcard cuts
Customers take swipe at Tesco over new Clubcard cuts
Clubcard spend cut as millions lose brand vouchers
Tesco to restrict Clubcard Boost to partner firms
Sainsbury’s ditches Price Match for lower prices

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