TESCO is to offer free delivery for Clubcard Plus members to beat off competition from Amazon Fresh.
The supermarket charges £4.50 for a delivery slot but boss Dave Lewis told The Sunday Telegraph that it hopes to scrap the fees for customers who've signed up to its premium loyalty scheme.
Last month, tech giant Amazon said that it would offer free delivery on grocery orders to its estimated 15million UK Prime members in a bid to break into industry.
Mr Lewis said that Amazon's subscription service, Prime – which costs £7.99 a month or £79 a year – is similar to its Clubcard Plus scheme.
He added: " So an opportunity into the future for us is to think about how we put delivery into Clubcard Plus. That’s always been the direction of travel."
The supermarket launched its Clubcard Plus scheme in November last year, and runs alongside its existing Clubcard loyalty programme.
Supermarket loyalty schemes – which has one?
MOST UK supermarkets have loyalty schemes so customers can build up points and save money while they shop.
Here we round up what saving programmes you'll find at the big brands.
- Iceland: Unlike other stores, you don't collect points with the Iceland Bonus Card. Instead, you load it up with money and Iceland will give you £1 for every £20 you save. Cash isn't protected though.
- Morrisons: Morrisons' More gives customers five points per £1 spent in store. When customers earn 5,000 points they receive a £5 voucher.
- Sainsbury's: While Sainsbury's doesn't have a personal scheme, it does own the Nectar card which can also be used in Argos, eBay and other shops. You need 200 Nectar points to save up £1 to spend on your card. You need to spend at least £1 to get one Nectar point.
- Tesco: Tesco Clubcard has over 17million members in the UK alone. You use it each time you shop and build up points that can be turned into vouchers – 150 points gets you a £1.50 voucher. Here you need to spend £1 in Tesco to get one point.
- Waitrose: myWaitrose also doesn't allow you to collect points but instead you'll get access to free hot drinks, and discounts off certain brands in store.
Instead of relying on customers to collect points to spend in store, shoppers pay £7.99 a month, or £95.88 a year, to access extra discounts and deals.
This includes 10 per cent off selected Tesco brands in-store including F&F, Fred & Flo, Go Cook, Tesco Pet, Carousel, and Fox & Ivy.
Tesco Mobile customers who sign up to the scheme will bag double data, while Tesco Bank users will be able to apply to exclusive credit card deals.
The supermarket claims that it saves shoppers £400 a year – they can also collect loyalty points too.
But subscribers will have to wait a while before benefiting from the perk – Mr Lewis said that it has to meet current challenges first, namely keeping up with demand.
Since the coronavirus lockdown, the retailer has increased the number of delivery slots available from 600,000 a week to 1.4million.
How to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from Hannah Maundrell, editor of Money.co.uk, about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – you are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
But it's costing the company to provide the service resulting in a shake up of delivery charges.
From August, the supermarket charges a flat fee of £4.50 – before it cost shoppers between £2 and £7 for the service depending on the time and day of the week.
Amazon has been trying to take on the grocery world for a while now, first launching its Fresh service in the UK four years ago.
In 2017, it bought posh grocery store Whole Foods for £10.7billion.
During lockdown, the tech company launched plans to merge its Fresh and Prime Now arms to deliver groceries in a matter of hours.
ccording to trade magazine The Grocer, the project involves upgrading nine existing Amazon depots in the UK so they can handle fresh groceries.
The first depot to be refitted is located in London, and the next in Leeds.
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