Tesco waves white flag over 'confusing' Clubcard deals

Tesco has bowed to pressure to change how it shows prices on its Clubcard deals in stores and online amid claims that the supermarket giant may have been breaking the law by making it virtually impossible for shoppers to compare deals.

In June last year, Which? reported Tesco to the Competition & Markets Authority, pointing to prices of ketchup as an example of unclear pricing; there are currently 8,000 Clubcard offers every week.

According to competition rules, unit prices could be seen as “material information” which most people would need in order to make an informed decision about how to get the best value from what they are buying.

The retailer initially dismissed the complaint, but has now waved the white flag, even though UK chief executive Jason Tarry claims “this is something that we have been planning to do for some time”.

In a blog post, Tarry added: “Over the coming weeks these changes will appear in all our stores, as our colleagues update millions of price labels on the shelf edge. We will also be adding these unit prices to our Clubcard Prices deals online.”

Which? director of policy and advocacy Rocio Concha commented: “The lack of unit pricing on Tesco’s Clubcard offers was a glaring omission and we warned that this approach could be breaking the law last summer, so it’s good to see the nation’s largest supermarket stepping up to do the right thing by making this important change.

“We look forward to seeing this rolled out quickly across all stores and online so shoppers can benefit as soon as possible.”

Last month, the CMA officially launched its probe into supermarket loyalty pricing – first flagged up in November last year – as part of a wider programme to help tackle cost of living pressures in the groceries sector.

The review has been triggered by concerns that the growth in member-only deals, which began with Tesco Clubcard Prices as far back as 2019 but has since been followed by Sainsbury’s, Morrisons, and the Co-op – puts non-members at a disadvantage.

It will cover a range of topics, including whether any aspects of loyalty pricing could mislead shoppers, for example whether the price is a genuine promotion or as good a deal as presented, to whether loyalty pricing is impacting consumer behaviour, and whether this has an impact on how supermarkets compete with each other.