The Co-operative Group has gone head-to-head with Tesco Clubcard by announcing its first-ever triple dividend.
The Co-op will give its four million members vouchers worth 6p for every pound they spend over Christmas, according to The Times.
The retailer claims its dividend is at least three times more valuable than Tesco’s revamped Clubcard scheme, which gives back shoppers 2p for every pound spent. The Co-op allows members to take the dividend in cash.
It also announced it will make price cuts worth £200m.
“With rising fuel prices and financial pressures hitting household budgets this Christmas, customers are looking for a great deal locally,” said chief executive Peter Marks.
“The acquisition of Somerfield has enabled us to offer them our best value deals ever across thousands of products and, for the first time, Somerfield customers will be able to benefit from the famous ‘divi’ too.”
This year’s dividend, which takes effect from today on biscuits and confectionery, will move to alcohol and fresh food later in December.
Meanwhile, Tesco today said it is paying out early on its February Clubcard reward statement early, giving shoppers £67m in vouchers ahead of Christmas.
“This seasonal surprise is to help customers at a time when we know they will appreciate it most,” said Tesco commercial director Richard Brasher. “Our customers can choose to use their vouchers for Christmas extras or hold onto them until the rest of their February statement.”
Read more
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Tesco sends out £160m of vouchers (7 November 2009)
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