Tesco (LON:TSCO) is experimenting with giving its Clubcard holders lower prices at the till, The Sunday Times has revealed. The update comes after it emerged earlier this month that Britain’s biggest grocer was working on a new Amazon-style loyalty scheme.
Tesco’s share price fell in the previous session, giving up 0.48 percent to close at 247.10p, underperforming the benchmark FTSE 100 index which ended trading 0.26 percent higher at 7,437.06. The grocer’s shares have added just under six percent to their value over the past year, as compared with about a 2.5-percent gain in the Footsie.
Clubcard price cuts trial
The Sunday Times reported yesterday that Tesco was understood to have lowered prices for Clubcard holders on 20 randomly selected groceries across 50 stores. The move was reportedly part of a week-long trial. The newspaper noted that the trial echoed a scheme launched by US e-commerce giant Amazon in its Whole Foods chain in America last year, where its Prime members received discounts on a rotating range of groceries.
Last week, it emerged that Britain’s biggest grocer was working on a new loyalty scheme in the mould of Amazon Prime, which would give customers greater incentives to sign up to the company’s bank and mobile phone services.
Analysts on blue-chip grocer
The 15 analysts offering 12-month Tesco share price targets for the Financial Times have a median target of 275.00p on the shares, with a high estimate of 305.00p and a low estimate of 200.00p. As of April 12, the consensus forecast amongst 21 polled investment analysts covering the blue-chip supermarket has it that the company will outperform the market.
Tesco updated investors on its full-year performance last week, posting a rise in sales and profits for the 2018/19 financial year, while chief executive Dave Lewis noted that the company was on track to meet ‘the vast majority’ of its turnaround goals.