Tesco cuts the value of Clubcard rewards scheme

Here is a lovely example of the high level of competition in the supermarket sector, with Tesco deciding to reduce the value of their Clubcard rewards scheme.

Please read: Tesco to cut the value of Clubcard rewards scheme (BBC News)

For me, the key sentence in this article is the following: "supermarkets were facing increased costs and were 'having to decide where to invest and where to cut back'." but there's also an interesting insight into market structure in that the article points out that other retailers have taken similar steps, notably Sainsbury's in relation to Nectar points.

The other angle on this, which I quite like, is that this is also a response to higher inflation - it's effectively a very cunning form of 'shrinkflation'. That said, it does seem to be odd for a retailer to be taking a step that's going to upset some of their most loyal customers.