Clubcard in hand

Tesco is launching a major overhaul of its Clubcard loyalty scheme, in which it is replacing Clubcard Boost events with more regular promotions including double points.

Up until September 2011, Tesco consistently offered double Clubcard points, but this was ditched in favour of its much-maligned £500m Big Price Drop scheme, which was supposed to signal a move to more everyday low prices.

CEO Dave Lewis, who has promised a simplified price message, is now looking at ways to make better use of Clubcard, which, despite the popularity of Clubcard Boost, is widely seen to be underused by Tesco.

Lewis announced at its interim results last month that Tesco planned a new pricing initiative to become more competitive with the discounters on everyday products across a range of key sectors. He said it was slashing investment in coupons to finance cheaper shelf prices.

Lewis, who had been trying to sell off Clubcard creator Dunnhumby, now looks like making it one of the major weapons against his rivals in its latest move.

Tesco wrote to customers yesterday informing them that the Boost promotion in May would be the last in store and online.

A message on its website reads: “Ending Boost at Tesco means that we can focus on a simpler approach that’s appealing to everyone and which customers can benefit from when they want, not just at certain times of the year.

In the coming months, we’ll be doing more to help you get the most out of the scheme, such as double points events to help grow your points balance faster and improving our Boost Partners offer, where you can already get up to four times the value of your vouchers.”

Last year, Tesco extended its Clubcard Boost promotion, to include products such as games and technology for the first time.