Tesco's online business has followed in Asda and Waitrose's footsteps by automatically refunding the difference on more expensive substitutions.
Under the Refund the Difference initiative, shoppers who have an out- of-stock product substituted for a more expensive item will only pay the price of their original product.
"If we offer a £5 product for £4, we will match any substitute item to the £4 price point and not the £5," Tesco.com operations director Barney Burgess told The Grocer.
"Customers are giving us very positive feedback," he added. "It has helped us achieve a very strong summer along with the launch of double Clubcard points and the promotions we offer."
Burgess shrugged off Ocado's price war against Tesco, which was launched in March last year and matches Tesco's price on 7,000 brands.
"Customers will be the judge of where they choose to shop and as long as we continue to focus on making their shopping experience the best we possibly can by launching initiatives such as Refund the Difference, we have nothing to worry about."
Tesco won the star order in the latest Online G33 survey this week, thanks to a chatty and knowledgable delivery driver, a well-designed website and strong availability. It was also the only retailer to offer crates and used just one carrier bag to deliver the shop.
Only 11% of consumers currently shop regularly or exclusively online, according to the latest data from Mintel, which also revealed 45% did not see the point of home shopping and 31% found it a chore.
The Grocer 33 Online p24
Under the Refund the Difference initiative, shoppers who have an out- of-stock product substituted for a more expensive item will only pay the price of their original product.
"If we offer a £5 product for £4, we will match any substitute item to the £4 price point and not the £5," Tesco.com operations director Barney Burgess told The Grocer.
"Customers are giving us very positive feedback," he added. "It has helped us achieve a very strong summer along with the launch of double Clubcard points and the promotions we offer."
Burgess shrugged off Ocado's price war against Tesco, which was launched in March last year and matches Tesco's price on 7,000 brands.
"Customers will be the judge of where they choose to shop and as long as we continue to focus on making their shopping experience the best we possibly can by launching initiatives such as Refund the Difference, we have nothing to worry about."
Tesco won the star order in the latest Online G33 survey this week, thanks to a chatty and knowledgable delivery driver, a well-designed website and strong availability. It was also the only retailer to offer crates and used just one carrier bag to deliver the shop.
Only 11% of consumers currently shop regularly or exclusively online, according to the latest data from Mintel, which also revealed 45% did not see the point of home shopping and 31% found it a chore.
The Grocer 33 Online p24
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