Like the Red Bull F1 car, Tesco Clubcard now has an even faster model

On the eve of the Tesco results this week, Sainsbury’s announced the launch of Nectar Prices. It’s an homage to Tesco’s Clubcard Prices that comes hot on the heels of Aldi Price Match, as well as other Tesco initiatives pioneered in the past, from online shopping and premium tiering, to Sainsbury’s move into convenience stores, and even the aping of Clubcard itself.

And one suspects Tesco won’t be overly bothered at this latest flattering move. True, Sainsbury’s has some decent initial offers but with less than 500 Nectar Prices versus almost 6,000 Tesco Clubcard Prices, this is a toe in the water from Sainsbury’s, with offers limited to branded, ambient items – most of them in health and beauty.

There’s also the question of execution. As Tesco CEO Ken Murphy said at the results this week: “Owning a racing car is [only] step one. Step two is how you drive it.” And it’s clear Tesco is an excellent driver, opening up an unassailable lead in the loyalty card stakes, What’s more, like the Red Bull F1 car, Tesco Clubcard has come into the new year with an even faster model, as Murphy revealed.

It’s not only increased active Clubcard usage to over 21 million, it’s driving digitisation, with 14 million users actively digitally engaged, and in-app personalised coupons doubling to four million. The recent completed migration of the Clubcard app into a single all-singing, all-dancing Tesco grocery app also means it now serves all shopper missions, including home delivery, click & collect, Whoosh rapid delivery, GetGo queue-free shopping, in-store stock checking, payment and full Clubcard functionality. Impressive stuff.

There’s a lot of noise around the potential of retail media for Tesco (and its rivals) right now. But Tesco Clubcard is a real engine of future growth, and a clear competitive advantage to rival and arguably exceed anything it can offer on the pricing front. With a “really strong engagement platform” in place, Murphy is looking forward to taking the new souped-up app-based Clubcard “for a proper drive this year”. The supermarket’s pole position is secure.