Tesco will launch a new paid membership scheme, giving customers a discount on two monthly shops, on November 8, as the retailer faces increasing pressure from discount retailers.
Dave Lewis, the retailer’s chief executive, said Clubcard Plus will give customers benefits and savings across grocery stores, Tesco Bank and Tesco Mobile.
“We’ve put together all the benefits that are possible for a customer across Tesco for the first time,” he said on Tuesday.
The scheme, which costs £7.99 a month, will give customers 10% off two shops of up to £200 a month, with a maximum saving of £40 per month.
But the discount will have to be applied at the till, and cannot be used retrospectively or rolled over to the next month, Lewis said.
Customers will therefore not be able to decide at the end of the month which shops they want to apply the discount to.
Meanwhile, Clubcard Plus customers who have a mobile phone contract with Tesco will get double their current data, the business said. And Tesco Bank customers will be able to use their cards abroad without foreign exchange fees.
Tesco Bank users will also be able to gather Clubcard points when shopping outside Tesco.
The scheme, which will be advertised using a scene from the classic movie Casablanca, will start on November 8, Tesco said.
Lewis denied that this was a direct response to the threat of discount retailers Aldi and Lidl.
“It’s about rewarding loyalty,” he said, but added “we will see that in our market share”.
Tesco is still the most popular supermarket in the UK, with a 27% market share, according to data from Kantar.
Yet the supermarket lost half a percentage point in the last survey as the two German retailers both grew.
Clubcard Plus members will not be able to use their 10% discount online, and the loyalty scheme will only be available to those with smartphones.
Nineteen million customers have become Clubcard users since the service launched in 1995, with two million added in the last two years.
“It was really quite instrumental in taking Tesco from being the number two to number one retailer in the years after 1995,” Mr Lewis said.