Tesco UK Considers Free Grocery Delivery for Clubcard Members

Tesco in the UK is looking to offer free grocery delivery for clubcard members in order to compete with Amazon Prime.

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Tesco in the UK is considering free grocery home delivery to members of its premium loyalty scheme, Clubcard Plus, as the pandemic raises shopper expectations for fast, flexible and affordable ecommerce fulfillment. Tesco currently charges GBP5.5 for a 1-hour delivery slot and GBP3 for a 4-hour ‘Flexi Saver’ slot. Customers can also opt for Delivery Saver, which offers free unlimited delivery for a monthly fee of GBP7.99.

With Amazon announcing the addition of free grocery delivery through its Amazon Fresh service for its 15 million UK Prime members, Tesco looks ready to respond with a similar benefit across its own loyalty scheme. The addition of free delivery to a broader set of Clubcard Plus benefits will increase the appeal of Tesco’s loyalty program, while demonstrating the rising importance of fulfillment as a key component of any future loyalty proposition.

As benchmarks on the cost, flexibility and speed of delivery keep rising, brands must be aware of how affordable delivery options are beginning to emerge as a table stake capability for grocers in the UK. As grocery ecommerce will remain more deeply engrained in shopper behaviors as a legacy of COVID-19, brands must prioritize rapid capability-building around different platforms and fulfillment models, in order to build visibility, drive conversion, provide availability and grow market share beyond the pandemic.

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