Tesco Bengaluru’s Post

Despite the ongoing cost-of-living crisis, the article highlights Tesco's remarkable success in attracting customers, particularly from premium retailers. What makes this development intriguing is Tesco's strategic focus on innovation, range expansion, and adapting to changing consumer behaviour, which has enabled it to outperform its rivals and double its profits consistently. Competitors in the retail sector need to take note of Tesco's winning strategies and be mindful of several key factors to retain their customers. Firstly, they must prioritise product quality and innovation to compete effectively, especially in the premium segment where Tesco has made significant inroads. Secondly, maintaining competitive pricing while passing on cost savings to customers will be crucial to prevent them from defecting to Tesco. Finally, a customer-centric approach, including personalised experiences and loyalty programs, can help competitors strengthen their relationships with shoppers and fend off Tesco's advances. Overall, Tesco's success underscores the importance of agility, innovation, and customer-centricity in navigating today's fiercely competitive retail landscape. To retain their market share and stay ahead of the game, competitors must be proactive in adapting to market dynamics and meeting evolving consumer expectations. Read more here: https://lnkd.in/eGiFYfcR Follow Retail Savvy at: https://lnkd.in/etXuWN48 #TescoSuccess #RetailStrategy #RetailSavvy #SavvyInsights

#ConsumerNZ warns supermarket shoppers: Beware of loyalty lure We're warning New Zealanders to be wary of supermarket loyalty schemes, with recent research showing yet again they don’t always offer the most competitive price. We compared products marked with loyalty discounts at Woolworths and New World stores with prices for the same products at Pak’nSave (which does not require customers to be members to get cheaper prices). We found some products marked as loyalty “specials” could be purchased for a cheaper price elsewhere..... https://bit.ly/499m2XO #NewZealand #Business #Retail #Supermarket #LoyaltySchemes Via www.consumer.org.nz

Tesco shoppers plan more! They are less likely to be tempted by #innovation or buy on #display. And there's some work to do for Tesco to satisfy on #price. ...according to 60,000 grocery shoppers! See how this compares to Sainsbury's Asda Morrisons Aldi UK Lidl GB in our 2023 Retailer Profiles report. Download a copy here:   https://lnkd.in/eMrDCmFt #categorymanagement #shopperinsights #groceryretail

#5 Market Enthusiast Diary:The Battle for Bargain Shoppers in UK Supermarkets and Competitive Pricing As a regular shopper at Lidl, Sainsbury’s, and occasionally Asda, I’ve noticed a trend that’s reshaping the retail landscape: the aggressive price matching strategies these supermarkets employ, particularly in comparison to Aldi. This tactic has become especially in recent months, as cost-conscious consumers increasingly look for the best deals amidst economic uncertainty. Lidl vs. Aldi Lidl prominently displays price comparisons to Aldi, emphasizing its commitment to offering similar or lower prices. This strategy not only aims to retain loyal customers but also to attract those who might be inclined to shop at Aldi, known for its consistently low prices. Sainsbury's Strategy Similarly, Sainsbury’s has started to highlight items where its prices match those of Aldi. This is a notable shift for Sainsbury’s, traditionally perceived as a mid-range supermarket. By aligning some of its pricing with Aldi, Sainsbury's is signaling to its customers that they can find value for money within its aisles as well. Asda’s Approach During a recent visit to Asda, I observed price comparisons for various products, particularly meat, that are aligned with those at Lidl and Aldi. This strategy indicates Asda’s effort to position itself competitively against the discount giants. The Outlier: Tesco Interestingly, Tesco seems to be the major supermarket not heavily investing in this direct price comparison strategy. Instead, Tesco focuses on other loyalty initiatives like Clubcard prices, offering discounts to members rather than directly comparing with Aldi. The Aldi Effect Aldi’s pricing strategy has clearly influenced its competitors. Known for its no-frills approach and low prices, Aldi has set a benchmark that other supermarkets feel compelled to meet. This dynamic underscores a significant shift in the UK grocery market, where the battle for bargain shoppers is intensifying. From a market enthusiast's perspective, these strategies highlight how supermarkets are adapting to consumer demand for affordability. As inflation continues to affect household budgets, the emphasis on price matching, particularly with Aldi, is likely to persist. Tesco stands out as the exception, focusing on its Clubcard and loyalty programs rather than direct price comparisons. This approach allows Tesco to offer exclusive discounts to loyal customers, maintaining a different strategy amidst the price wars. This trend reflects broader market forces at play and showcases the ongoing evolution in retail competition. #RetailIndustry #FMCG #UnitedKingdom #Jobseeker

Customers clicking-off online grocery shopping? The crowds at my local Sainbury’s can attest to this. The weird substitutes and poor dates on food may have been funny memes on social media. But in a post-pandemic world, when you want to get the most for your money, you'll take a trip in-store. Even with WFH, we can't take random deliveries to the door during a meeting. We are tired of being told something is in stock to only find out it isn't, on the day of delivery. And if you are on the top floor of a building, good luck getting the deliveries to your floor. We are hunter-gatherers at our core. We enjoy seeking out bargains and discovering new tastes and flavours. So for anyone in retail, please tap into this. People revert to online when they are tired of not finding what they need on the high street. But when retailers listen to customers and offer a broad range of goods and services. Footfall will return. Sainsbury has been canny with integrations with Argos and clothing categories. Their Nectar program has a wide range of other retailers to earn points on. Something Tesco might consider. #retail #retailnews #ecomm #ecommerce #groceries #bricksandmortar #consumerbehaviour #shoppinghabits #food #grocerytrade #online #highstreet #consumertrends https://lnkd.in/eNDFMsWC

79% of the UK have a Tesco Clubcard. However, 59% of that population think supermarkets inflate their loyalty scheme savings. Retail Week recently asked consumer research firm Walnut Unlimited to survey 2,000 shoppers about their thoughts on supermarket loyalty schemes, and, as you can see, the results didn't read positively for retailers.   What does this mean for the vast number of Tesco Clubcard holders?   Grocery retail loyalty needs to work harder.   I posted previously that price-driven loyalty is lazy marketing. Still, in the UK, at least, everyone is jumping on the same bandwagon, believing that it is the optimal form of consumer activation in the current economic climate.   However, this also presents an opportunity for grocery retail loyalty experts to differentiate and enhance their loyalty proposition beyond price.   In an era where integrity is paramount to brands, do supermarkets risk eroding customer loyalty and damaging their reputation if shoppers feel duped or undervalued?   How can their brand and customer experience drive real loyalty rather than deal loyalty?   What do you think about your supermarket loyalty programme? #fmcg #loyaltyprograms #loyaltyrewards #customerexperience

The latest 'For Love or Money' report from The Point of Loyalty provides the latest view on loyalty programs and subscriptions in Australia. The SPV Index (i.e. whether the program is Simple, Personal & Valuable), ranks the offerings with a common metric to see who came out on top. Highlights include: 🛒 Flybuys pips Woolworths Group Everyday Rewards to #1 in #Australia 🛒 Wesfarmers OneDigital OnePass has pushed Amazon into 4th spot 🛒 Cash rewards remain the favoured loyalty currency, although down YoY 🛒 85% of consumers felt (positive) emotional loyalty to a brand, remaining longer, purchasing more and potentially becoming brand advocates #retail #retailnews #retailmedia #loyalty #subscription #loyaltyprogram #marketplace #australian #shoppers Mi3Australia Wesfarmers Woolworths Supermarkets Cartology - Part of the Woolworths Group Unpacked by Flybuys Coles Group Coles Liquor https://lnkd.in/gUXn9bhd

'Whatever you do, don't lose the Grocer 33'. This was the message we had every single week that I was at Asda, as a Buyer it was even more important. Asda have won the G33 for price every single year since 1997, but no more & I don't think they will ever get it back. When they lost it wasn't even close, Tesco won 20 weeks & Asda 13, Sainsburys won 10. Last year Asda won 32, JS 11 & Morrisons 1, Tesco didn't win any. So what has changed? The G33 now includes loyalty card prices, it's not just headline price. With 82% of Tesco's transactions using Club Card it makes sense, it does expose how off on price Asda really are. Asda have not been price leaders for over a decade despite winning the G33 for price. The G33 has Aldi & Lidl as guest retailers, but every single time they take part they win. This is the reality that Asda have hidden behind for too long & Customers have recognised it & that is one of the reasons why they are shopping elsewhere. Loyalty cards for Customers are part of their everyday, they don't leave home without them, especially when they are an app on their phone. Is Asda's loyalty card required to get the best prices? No, it's not. You collect cash using the Asda Rewards App, you then have to create a voucher that you can use when you have enough money on the pot. In other words, it's not easy! Loyalty cards must be easy to use to ensure they are used all the time, the harder they are the less valid they are. This is why Club Card, then Nectar then almost all the others have offers that are 'members only', in other words, only available to loyalty card holders but easy to access. Asda have given up price with a whimper, not a fight, after owning that award for 27 years. The changing of the guard happened a long time ago but this time Asda have to face the fact, they are no where near a price leader. Maybe they don't want to be? If that is the case, then what do they want to stand for? #theretailmind #GrocerGoldAwards #Priceleader #groceryretail

If you shop in a mainstream supermarket, you may have noticed more and more products featuring ‘members only’ pricing. Tesco began this a few years ago and now it seems to be taking over in other major supermarkets too. The evolution of the loyalty card, be it ‘Clubcard’, ‘Nectar’, ‘More Card’ or ‘Sparks’ is quite significant. It used to be a way to collect points over a longer period of time and offer rewards based on customer preferences. Now it seems that supermarkets are choosing to reward customers in the here and now with significant discounts on certain products. At RMS we’ve been emphasising the challenges that retailers face in 2024 - particularly how consumers are tightening their belts and prioritising essentials such as groceries. As supermarkets face a race to the bottom in terms of their pricing, it seems to be the latest trick to incentivising customers to shop with their brand. What are your thoughts on ‘members only’ pricing? #Tesco #Sainsburys #MarksandSpencer #Asda #Clubcard #NectarCard #MoreCard #SparksCard #Retail #Supermarket #Food #ConsumerData #ConsumerPreferences Jim Lenaghan RMS Providing Stock Control Solutions to Retailers and Wholesalers.

*As Lidl’s Market Share Surges, Asda Risks Being Caught In The Middle* Despite recent research highlighting shopper cynicism of retailer loyalty schemes, Kantar data released earlier this week confirms that Tesco and Sainsbury’s are major beneficiaries, with both growing their market share by 0.4ppts over the last 12 weeks. Lidl’s performance shows similar growth (in sharp relief to Aldi’s drop in share) and is posing questions for other multiples …. Lidl’s performance is perhaps even more impressive when you consider that their loyalty scheme, Lidl Plus, is frankly not quite as punchy as the two market leaders ***The question is how sustainable this will be for Lidl and how Aldi will respond.Price will be the short-term driver, of course, but Aldi and Lidl need to build loyalty as Tesco and Sainsbury’s gain share*** Finlay suggests that the real challenge is for Asda, who have lost 0.5ppts of market share over the last year. “Whilst being caught in the middle between the discounters and the market leaders, Asda’s forecourt convenience strategy is sound and will pay dividends in the long term, as it is a great showcase for the larger store formats for the uninitiated and potential Asda shopper. As for the short term, this may be trickier and more worrying, as it may trigger another race to the bottom.” ***Finlay noted that for all retailers, the holy grail is to build volume, value and long-term loyalty. Some are doing this well, although volume growth is currently the hardest hard nut to crack***