tesco staff clubcard

Tesco Clubcard members would have received a discount of £6.95

Tesco’s loyalty-based prices undercut Asda for the third consecutive week, albeit this time by the narrowest possible margin.

It’s the latest demonstration of how fierce the price war is between the leading supermarkets.

Even without factoring in loyalty card prices, annual inflation was just 3.2%, well below the latest official 5% figure from the British Retail Consortium/NIQ for February, with Waitrose actually 1.2% cheaper than March 2023, Asda only 1.9% more expensive year on year, Tesco and Morrisons up 3.1% and 4.2% respectively, with the highest level of inflation at Sainsbury’s at 8%.

But factor in loyalty card pricing and annual inflation on the average basket across the five supermarkets was just 0.36%, with Tesco’s prices actually falling by 2%, as Clubcard holders received a discount of £6.95 on its £88.58 total.

That was enough to trump Asda’s £81.64 total by a penny, after Asda offered the lowest shelf-edge price for 17 items, eight exclusively, including the Bisto gravy granules, ham slices and Yorkshire Tea teabags.

Tesco’s Clubcard Prices would also have rubbed out the £5.79 gap Morrisons opened up.

Based on shelf-edge prices Morrisons was cheapest for 10 products and exclusively so for five, including the Dettol cleaning spray, Galia melon and garlic baguettes.

And using the same measure Tesco offered the cheapest price for 11 items, exclusively so for four (the caterpillar cake, Elmlea cream alternative, Skittles and Sunbites).

But factor in Clubcard Prices and Tesco was exclusively cheapest for nine items, more than any of its rivals.  

Unlike Tesco, Sainsbury’s loyalty scheme was unable to bridge the £8.84 gap versus Asda, with Nectar cardholders receiving a £4.79 discount, making it £4.06 more expensive than Tesco when all was said and done.

As to Waitrose its £94.31 total was £12.67 higher than Asda’s despite coming in exclusively cheapest for the beetroot salad, Higgidy veggie rolls and mozzarella.