Will Tesco's Clubcard Soon Be Available for Under-18s?

The recent announcement from Tesco regarding its intention to make the Clubcard available to under-18s is a significant move aimed at broadening access to its loyalty programme. This shift could provide younger shoppers with discounts on thousands of products, including popular meal deals, and allow them to collect points for vouchers. The decision follows pressure from consumer advocacy group Which?, which has been calling for supermarkets to eliminate what it describes as "unfair restrictions" on loyalty scheme eligibility.

Last updated: 01 October 2023 (BST)

What’s happening now

In a notable development for UK consumers, Tesco has announced plans to open its Clubcard loyalty programme to those under the age of 18. This move is particularly relevant given the increasing financial pressures many families face due to rising food prices. Currently, most UK supermarkets require customers to be at least 18 years old to join their loyalty schemes. By allowing younger customers to participate, Tesco aims to enhance its competitiveness in a market where consumers are seeking more value for their spending.

Key takeaways

• Tesco plans to allow under-18s access to its Clubcard loyalty programme.
• This decision is part of a broader push to make loyalty schemes more inclusive.
• Which? has been advocating for changes to supermarket loyalty scheme eligibility.
• Many supermarkets currently have age restrictions that limit access to discounts.

Timeline: how we got here

The move to include under-18s in Tesco's Clubcard loyalty scheme has emerged from a series of events and initiatives aimed at increasing consumer access to discounts:

• April 2023: Which? begins campaigning for supermarkets to lift age restrictions on loyalty schemes.
• August 2023: The UK's competition regulator suggests that supermarkets could do more to broaden access.
• October 2023: Tesco announces its intention to allow under-18s to join the Clubcard scheme.

What’s new vs what’s known

New today/this week

Tesco's recent announcement marks a significant policy change within the supermarket's loyalty programme, aimed at allowing younger shoppers to benefit from discounts and rewards. This decision reflects growing awareness of the need for inclusivity in customer loyalty initiatives.

What was already established

Previously, many major UK supermarkets, including Tesco, imposed age restrictions on loyalty cards, generally requiring customers to be 18 or older. Some competitors like the Co-op and Morrisons have implemented partial solutions, allowing younger customers to access discounts through parental accounts or temporary cards.

Impact for the UK

Consumers and households

For families, Tesco's decision to make its Clubcard available to under-18s could prove beneficial, especially during times of economic strain. With food prices rising, access to discounts can significantly ease financial burdens for households, allowing them to save on essential products.

Businesses and jobs

From a business perspective, expanding the Clubcard eligibility may enhance customer loyalty among younger shoppers, potentially increasing Tesco's market share in a highly competitive landscape. As loyalty programmes drive consumer behaviour, attracting a younger demographic may yield long-term benefits for Tesco in terms of brand loyalty and sales growth.

Policy and regulation

The UK competition regulator has indicated that while current eligibility requirements do not necessarily breach consumer law, there is room for improvement. This shift in Tesco's policy aligns with regulatory suggestions and reflects a broader trend towards inclusivity in consumer loyalty programmes.

Numbers that matter

• 3: Average number of loyalty cards held by consumers across supermarkets, according to Kantar.
• £1.5 billion: Estimated annual savings consumers could achieve through loyalty schemes if access were broadened.
• 16: Age at which some supermarkets, like the Co-op, allow registration for loyalty schemes.
• 2: Times Tesco has missed out on "Recommended Provider" status due to its Clubcard restrictions.

Definitions and jargon buster

• Clubcard: Tesco's loyalty card programme that offers discounts and points redeemable for vouchers.
• Which?: A UK consumer advocacy organisation focused on promoting consumer rights and satisfaction.
• Loyalty scheme: A programme offered by retailers to encourage repeat business by providing rewards to customers.

How to think about the next steps

Near term (0–4 weeks)

As Tesco prepares to implement changes to its Clubcard eligibility, consumers can expect further details on how the new system will work. Monitoring announcements from Tesco will be essential for understanding the specifics of the programme's rollout.

Medium term (1–6 months)

In the coming months, it will be crucial to observe how the market responds to Tesco's new policy. Competitors may feel pressure to adjust their loyalty programmes in response, potentially leading to more inclusive practices across the retail sector.

Signals to watch

• Official launch date for under-18 Clubcard access.
• Consumer feedback on the new programme and its perceived value.
• Potential responses from other supermarkets regarding their loyalty schemes.

Practical guidance

Do

• Stay informed about Tesco's Clubcard updates and how they affect your household.
• Consider signing up for loyalty schemes if eligible, to take advantage of discounts.
• Engage with consumer advocacy groups like Which? to support broader access initiatives.

Don’t

• Assume all supermarkets will follow Tesco's lead; check individual eligibility criteria.
• Miss out on potential savings by not exploring loyalty programmes available to you.

Checklist

• Verify your age eligibility for Tesco’s Clubcard and other loyalty schemes.
• Compare savings across different supermarkets to maximise discounts.
• Monitor announcements from Which? regarding consumer rights and loyalty schemes.

Risks, caveats, and uncertainties

While Tesco's move to allow under-18s access to its loyalty scheme is a positive step, there are uncertainties regarding the details of implementation. Factors such as data privacy, parental consent, and the overall effectiveness of the scheme in attracting young shoppers remain to be fully addressed. Additionally, the response from other supermarkets could vary, and not all may adopt similar policies, leaving some consumers still without access to discounts.

Bottom line

The decision by Tesco to make its Clubcard available to under-18s marks a significant shift towards inclusivity in UK's supermarket loyalty programmes. As the cost of living continues to challenge families, this change could provide valuable savings for younger consumers. Observing how this initiative unfolds and influences the market will be essential for consumers and competitors alike.

FAQs

What is Tesco's Clubcard?

Tesco's Clubcard is a loyalty programme that offers discounts and points redeemable for vouchers on purchases, allowing customers to save money on future shopping trips.

Why is Tesco changing its Clubcard eligibility?

Tesco aims to broaden access to its Clubcard for under-18s to enhance customer inclusivity and respond to advocacy from consumer groups like Which?.

How will the new Clubcard scheme work for under-18s?

Details on the implementation of the Clubcard for under-18s are still forthcoming, but it will allow younger shoppers to access discounts and collect points.