Nielsen data illustrates that Tesco has increased its market share during the 12 weeks to 5 September, compared with the same 12 week period in 2008.
Share according to Nielsen increased ever so slightly from 28.3% to 28.5%. According to Mike Watkins, senior manager retailer services at Nielsen the Clubcard 2 has appeared to have worked for Tesco. ‘Nielsen's initial assessment of Clubcard 2 is that it has helped increase spend per visit by up to 5% as shoppers maximise spend within Tesco. And in the last 4 weeks it has also helped maintain Tesco Total Till growths above 5%, which is ahead of Sainsbury's for the first time in a year, other than at Christmas,' he says.
Asda on the other hand does not have a loyalty card. In Nielsen's findings, however, Asda's growth is ahead of Tesco. Covering the same periods Asda increased share from 15.4% to 15.8%. Also the value sales percentage in the 4 weeks to 5 September is ahead of Tesco, with Asda posting a 5.7% increase.
Nielsen's research appears to contradict that of TNS Worldpanel data with regards to Tesco. TNS say that it is ‘too early to assess the impact of Tesco's Clubcard 2...and the Tesco share continues under pressure.'
TNS data shows that in the 12 weeks to 6 September 2009 the Tesco grocery market share dropped to 30.9%. This is compared with the same period of last year when Tesco had a share of 31.1%. Its closet rivals Asda and Sainsbury's have both increased share in the period.
A spokeswoman for Nielsen said. ‘Upping the anti on their clubcard is a strategic move aimed at driving loyalty, pulling their Clubcard members in-store and encouraging them to spend. Our figures, particularly the 4 weekly figures, show that Tesco growths are coming back to be in line with the other major supermarkets following a few months where they have lagged behind in value growth terms.'
Nick Everitt, Head of Market Intelligence, IGD said: ‘Clubcard 2 takes Tesco's loyalty programme to the next level, building on earlier developments in May 2009. Although it is still too early to comment on its performance, boosting an already popular loyalty programme is likely to generate significant customer interest - especially as doubled vouchers will arrive in time for the key Christmas trading period.'
Clubcard 2 was introduced 17 August following a teaser campaign from Tesco. It marked a significant change to the loyalty scheme which was re-launched in May and began rewarding customers with double points across certain across. The new activity last month opened the reward up to purchases across all categories in-store and online.
The loyalty scheme has rewarded its customer with over £3bn worth of vouchers since its launch in May 1995, so it would be wrong to underestimate its power. However, with conflicting data it's too early to claim that Tesco has benefited from the re-launch of the Clubcard.