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Jennifer Meierhans, a business reporter, reports that Tesco has recently increased the price of its lunchtime meal deal, adding to the growing trend of rising food prices in the UK. The cost of a main, snack, and drink has been raised from £3.60 to £3.85 for Clubcard holders, while those without the loyalty card will now pay £4.25 instead of £4. This change comes after prices were hiked in October 2022 due to the fastest rise in food prices in over four decades.
The varying prices for customers with and without a Clubcard highlight how major UK supermarkets are leveraging loyalty schemes to attract customers amid tightening profit margins resulting from escalating food prices. These loyalty cards provide retailers with valuable data on consumer preferences and buying habits, enabling them to offer targeted discounts and incentives to customers. Approximately 80% of Tesco shoppers are believed to participate in the Clubcard scheme, illustrating its widespread adoption among consumers.
While Tesco maintains that its meal deal still offers great value, some customers have expressed dissatisfaction with the price increase. Kristina, a 19-year-old from Nottingham, shared her disappointment over the hike, noting that the meal deal had become less affordable over time. She mentioned that alternative options like Poundland seemed to provide better value, hinting that she might refrain from purchasing Tesco’s meal deal in the future. Additionally, Kristina highlighted that prices for other products at Tesco had also increased significantly, making the supermarket’s offerings comparable to higher-end retailers like Waitrose.
The recent price adjustment by Tesco follows a similar move by Sainsbury’s, which raised its lunchtime multibuy price to £3.95 in June. While other major retailers like Boots, Co-op, Superdrug, and Waitrose have stated that they do not intend to increase their meal deal prices, the broader trend of rising food costs continues to impact consumers. With inflation figures showing a 4.9% increase in food and non-alcoholic drink prices over the past year, retailers are increasingly concerned about the financial strain on consumers. As a result, retailers have appealed to Chancellor Rachel Reeves to consider the potential impact of new taxes on businesses, warning that further cost pressures could lead to even higher prices for customers
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