Tesco is scrapping its paper coupons in a shake-up of its Clubcard loyalty scheme, it's been reported. But not all shoppers are happy, with one branding the move 'crazy' and another saying they plan to boycott the store.
From next month, the supermarket giant will stop distributing coupons and automatic statements, unless specifically requested by the customer. Instead, any accumulated points will be transferred into vouchers over email, with a barcode for consumers to scan at the checkout in stores.
Tesco told the Mirror it will make the change for those who regularly shop online, and that those users will get an email letting them know about the shake-up. Not all customers will be affected.
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If you have received an email and want to keep receiving your quarterly Clubcard statement and vouchers by post, you'll need to actively opt back in. You can do this by signing into your MyClubcard account online, clicking on 'statement preferences' and changing it back to 'by post' by May 5.
If you change your preferences after May 5, you'll receive your May statement and vouchers by email, but will then receive your August statement and vouchers by post. The shake-up comes amid a store transformation that will see the grocer, the largest in the UK, open 59 new branches over the next 12 months.
It follow's the decision to axe its Metro store format under a restructuring last year. Chief executive Ken Murphy said the latest opening programme will take it to a total of over 2,000 Express stores and 1,001 shops.
“Our priority is to be the most convenient retailer,” Murphy said. “That means serving customers wherever, whenever and however they want. No matter where our customers live, or how they shop.”
Up to 290,000 shop staff, along with call centre and warehouse workers, at Tesco will also get a bonus as a special "thank you" for their efforts over the past year, the retailer added. The group said the payout "recognises the way colleagues really stepped up to the industry challenges of the last year" and came as it reported annual profits that more than trebled to £2.03billion.
But Tesco's chief executive, Ken Murphy, warned that retail operating profits are expected to fall this year, to between £2.4billion and £2.6billion. Murphy warned profits this year are likely to be hit by the impact of soaring inflation on customers.
The group said it envisages its own costs to rise and it plans to invest in prices to remain competitive in light of rocketing food inflation. "Clearly, the external environment has become more challenging in recent months," Mr Murphy said.
"Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check - working in close partnership with our suppliers, as well as doing everything we can to reduce our own costs."
Mr Murphy said the full impact of high inflation was yet to be felt, but that many are "starting to look at how to manage their budgets and the trade-offs they will make". Those include how customers respond to the soaring cost of living and how much Tesco pumps into stabilising prices.
Murphy added: "We can see that customers are already looking at how they manage their budget and are making trade-offs." He insisted the chain would help shoppers "in their hour of greatest need", adding "we are laser-focused on keeping the cost of the weekly shop in check". Tesco has been approached for comment.
Dozens of people have taken to social media to discuss the changes. John Clark wrote on Facebook: "My parents don’t do online so sounds like you need to go online to opt out of online, how crazy?"
While Pete Breakspear wrote: "That's the end of Tesco for me then, I spend 1000s a year there."
But not all shoppers seemed to mind, Georgina Yeoman said: "I havent recieved paper vouchers for ages. I prefer having the app or online, it's the way everything is going. I find tesco no more expensive than lidl etc and still get points, which other supermarkets don't do."
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