Tesco has announced it is trialling personalised pricing with a select group of Clubcard members.
The limited trial is offering participants ‘Your Clubcard Prices’ on selected products that the supermarket knows they like.
“We are constantly looking for ways to make Clubcard work harder for our customers,” said a Tesco spokesperson. “And with Clubcard Prices on thousands of products, it is already saving customers up to £385 on the annual cost of their groceries.”
They continued: “We are currently offering Your Clubcard Prices to a trial group of our Clubcard members, giving them offers on products they regularly buy at Tesco, in addition to the thousands of Clubcard Prices available to all Clubcard members each week."
Last year, Tesco also announced it would use AI to offer customers personalised challenges that could win them extra points for its Clubcard loyalty scheme.
The supermarket partnered with EagleAI for a six-week campaign, during which customers completed up to 10 challenges from 20 which have been tailored to them.
In early 2024, the business said it would change how it displays Clubcard pricing after facing criticism from consumer watch group Which?
Which? in 2023 reported Tesco to the Competition and Markets Authority (CMA), claiming that it “could be breaking the law” in failing to provide unit pricing on products with Clubcard promotion prices.
Tesco at the time said that it was “disappointed” by the claims made by Which?, and said that its price labelling had been endorsed by Trading Standards.
However, former Tesco UK chief executive Jason Tarry said that that the company would add unit pricing to Clubcard Prices labelling.
The newly launched personalised pricing trial comes after Britain's largest supermarket reported its strongest Christmas trading period yet, with UK sales rising 4.1 per cent in the six weeks to 4 January 2025, helping push its market share to its highest level since 2016.
Tesco saw food sales increase by 4.7 per cent over the festive period, driven primarily by volume growth and strong performance in fresh food. Non-food sales, excluding toys, grew by four per cent, with growth seen across both home and clothing categories.
The strong performance helped Tesco achieve a market share of 28.5 per cent, representing its highest level since 2016. The company said it has now recorded 19 consecutive periods of market share gains, with customers switching from both premium retailers and discount competitors.
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