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Tesco changes Clubcard pricing displays after watchdog probe

Published 20/02/2024, 13:01
© Reuters.  Tesco changes Clubcard pricing displays after watchdog probe
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Proactive Investors - Tesco (LON:TSCO) is changing the way it displays its Clubcard deals after complaints they are misleading and confusing.

Unit pricing will now be rolled out across all its Clubcard price labels, said the grocery chain, allowing customers to compare different-sized items to get the best deal.

Critics said that currently, it is hard for shoppers to know if they are getting a good deal or not but with unit pricing text is added underneath the selling price to enable brands and sizes to be compared.

Tesco UK CEO Jason Tarry commented "This is something that we have been planning to do for some time, and I am really pleased that we are ready to make the change.

"Over the coming weeks, these changes will appear in all our stores, as our colleagues update millions of price labels on the shelf edge. We will also be adding these unit prices to our Clubcard Prices deals online."

Tesco’s Clubcard scheme along with others in the sector such as Sainsbury’s nectar is currently under investigation by the Competition and Markets Authority following a complaint by consumer watchdog Which? in June of last year.

In January, George Lusty, senior director for consumer protection at the CMA, said: “Food prices have risen over 27% in the last two years and everyone is on the lookout for ways to save money on their grocery bills.

“Unit pricing – that small text underneath the main selling price – is a great way to compare brands and sizes to make sure you’re not spending more money than you need to on groceries.

Rocio Concha, director of policy and advocacy at Which? said the way prices were set previously could have been against the law.

"Which? has campaigned through the cost of living crisis for supermarkets to make pricing clearer so shoppers can easily find the best value deals at a time when so many have struggled to put food on the table.

"The lack of unit pricing on Tesco's Clubcard offers was a glaring omission and we warned that this approach could be breaking the law last summer, so it's good to see the nation's largest supermarket stepping up to do the right thing by making this important change.”

Shares in Tesco rose by 0.9% to 283.7p.

Read more on Proactive Investors UK

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