London Daily

Focus on the big picture.
Sunday, Sep 20, 2026

Tesco to cut the value of Clubcard rewards scheme

Tesco to cut the value of Clubcard rewards scheme

Tesco has announced it is cutting the value of its Clubcard rewards scheme.

From 14 June, Clubcard points will be worth twice their value when customers cash them in, rather than three times as they are now.

The scheme enables shoppers to collect points for money spent at Tesco and exchange them for vouchers which can be used in store or for restaurant meals and day trips.

Sainsbury's and Boots also cut the value of loyalty schemes recently.

Some Tesco customers reacted with disappointment to the grocer's announcement, pointing out it came as supermarket prices were rising.

Jason Murray, from Stockport, said the perks offered by Tesco's Clubcard were the "only reason" he shopped at the supermarket.

He told the BBC from 14 June he will switch to Aldi and Lidl after thinking about it and comparing prices in recent months.


"I don't quite think they understand how much of an attraction their Clubcard is to their customers," he said.

"The customer is key and in my opinion holds all the cards. What I will lose via Clubcard I will gain via cheaper shopping."

One woman tweeted that Tesco's Clubcard scheme had "kept me shopping with you but now with your prices soaring and the announcement about the points changes I'll be looking elsewhere".

Another said reducing the rewards by a third made them "pretty redundant tbh [to be honest], hardly a reward at all".

In a message to customers, Tesco's chief customer officer Alessandra Bellini said the move would "make sure we can continue to provide you with a wide range of exciting rewards, whilst keeping our product prices low".

She also said the company was extending the time period that Clubcard rewards would be valid for up to 12 months, rather than six in order for shoppers to use points at the higher value before the changes come in.

The grocer first introduced Clubcard in 1995 and within a year, customers were spending 28% more in its stores. The popular scheme enables points to be spent at the likes of Pizza Express, Legoland and Alton Towers.

When Tesco last changed its loyalty scheme, dropping the value of some rewards and raising others, customers responded angrily to the move which was implemented immediately.

The grocer is not the only retailer to have made its rewards scheme less generous recently.

From May, Boot's Advantage Card holders will get 25% less for every £1 they spend in store, earning 3p rather than 4p.

In November, Sainsbury's Bank cut the amount of Nectar points customers could earn by 75%, from two points for every £1 spent, to one point for every £2.

Commentators say there has been a shift to instant discounts for cardholders rather than rewards for points collection across various retailers.

That allows companies to continue to collect valuable data about spending habits, while keeping their own costs down.

Differential pricing also allows companies to push their own-brand products, and have branded products supplied cheaper, to enhance profits.

Lisa Byfield-Green, data and insights director at trade magazine Retail Week, said just like households, supermarkets were facing increased costs and were "having to decide where to invest and where to cut back".

She said Tesco's Aldi price match scheme, Clubcard prices and Low Everyday Price initiatives had "come at a cost" for the business.

"As costs spiral, Tesco has already cut jobs at its head office and reduced the number of managers in its stores. It has closed service counters and at the same time will grant shop workers their third wage increase of the year next month."

Newsletter

Related Articles

0:00
0:00
Close
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
UK Explores Joining Canada-Led Global Defence Bank
Thirlwall Inquiry Highlights Management Failures Surrounding Lucy Letby Crimes
Parliamentary Committee Calls for New UK Law to Address AI Risks to Human Rights
UK Considers Giving Regional Mayors Greater Oversight of Water Companies
UK Opposition Presses Burnham for Stronger Response to Russian Security Threats
Reform UK Faces Scrutiny Over £72 Million in Donations as Political Finance Rules Tighten
Millisecond Software Failure Behind UK Air-Traffic Outage That Cancelled More Than 2,000 Flights
Bank of England Holds Interest Rate at 3.75% as Energy Prices Complicate Inflation Outlook
Burnham Warns of Difficult Choices in October Budget as UK Inflation Rises to 3.1%
Addison Lee Founder Loses £20.5 Million Non-Domicile Tax Case
BrewDog Creditors Face Heavy Losses After Collapse
Thirteenth Metropolitan Police Officer Dismissed Over Charing Cross Conduct
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Accommodation Plan
NHS Approves Life-Extending Treatment for Women With Incurable Breast Cancer
Software Defect Blamed for Major UK Air Traffic Disruption
Twenty Women Underwent Unnecessary Mastectomies at County Durham NHS Trust
British Steel Costs Taxpayers £1.3 Million a Day as MPs Demand Long-Term Plan
UK Parliament Advances Sovereign Grant Reform Setting Royal Funding at £99.9 Million
King Charles Urges Human-Centred Approach to Artificial Intelligence at Scotland Summit
House of Lords Begins Scrutiny of Voting-Age and Political Finance Reforms
UK Labour Market Shows Growing Divide Between Younger and Older Workers
Nearly Seven in 10 UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
Andy Burnham Reaffirms UK Net-Zero Target Amid North Sea Energy Debate
UK Parliament Demands Credible Financial and Decarbonisation Plan for British Steel
MPs Urge Government to Reject Thames Water Rescue Deal and Prepare Special Administration
Bank of England Holds Rate at 3.75% as Energy Shock Raises Inflation Risks
TUC Calls for Social Energy Tariff Funded by Higher Taxes on Bank Profits
UK Parliament Enters Conference Recess After Advancing Sovereign Grant Legislation
King Charles Hosts Artificial Intelligence Leaders at Dumfries House Summit
Nearly Seven in Ten UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
×