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Tesco Raises Prices for Meal Deals

Geoff Riley

22nd October 2022

For the first time in a decade, Tesco has raised the price of their meal deal offer including the price charged to clubcard holders.

Tesco Raises Prices for Meal Deals

Tesco meal deal prices going up again £3 to £3.40 with Clubcard and £3.50 to £3.90 if you don’t have a Clubcard.

Clubcard is a hugely important part of Tesco’s approach to winning and then holding onto customers within the oligopolistic retail grocery market.

65 percent of respondents in a recent YouGov survey named the Tesco Clubcard as an attractive option.

More than 20 million UK households have a Clubcard and nine million access Clubcard via the app.(Source: Tesco annual report)

100% of Tesco's UK price promotions are through Clubcard Prices

An important aspect of Clubcard for Tesco is the immense amount of information (market intelligence) that the business is able to gather in every hour of the day about the preferences, shopping habits and price sensitivity of their customers.

This is why their ownership of Dunnhumby is so important. It gives Tesco the ability to send hyper-targeted, individualised price discounts to customers - an important example of price discrimination that Tesco uses to reinforce brand loyalty whilst also increasing revenues.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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