Tesco sign

Sir: Tesco’s rise in share price has been partly due to speculation over a £2bn sale of its data company Dunnhumby (‘City news’, 10 January). The potential sale reflects a desire to sell assets in order to reinvest to compete against increasing competition. 

Tesco is focusing more on in-store and fuel price cut promotions. The possible sale of Dunnhumby reflects an evolving strategy, leaving an opportunity for brands to greater engage with customers directly. Until recently, through schemes like Clubcard, retailers have held most of the power when it comes to loyalty. However, space is now opening up for brands to encourage purchases across multiple retailers and increase their direct engagement with their customers.

Chris Newbery, director, Shopitize