Tesco to cut the value of Clubcard rewards scheme

Tesco has announced it is cutting value of its Clubcard rewards scheme.

From 14 June, Clubcard points will be worth twice their value when customers cash them in, rather than three times as they are now.

The scheme enables shoppers to collect points for money spent at Tesco and exchange them for vouchers which can be used in store or for restaurant meals and day trips.

Tesco said it was not the only retailer changing its loyalty scheme.

In a message to customers, the supermarket's chief customer officer Alessandra Bellini said the move would "make sure we can continue to provide you with a wide range of exciting rewards, whilst keeping our product prices low".

She said the company was extending the time period that Clubcard rewards would be valid for to 12 months, rather than six in order for shoppers to use points at the higher value before the changes come in.

Tesco first introduced Clubcard in 1995 and within a year, customers were spending 28% more in its stores. The popular scheme enables points to be spent at the likes of Pizza Express, Legoland and Alton Towers.

However, Tesco is not the only retailer to have made its rewards scheme less generous recently.

From May, Boot's Advantage Card holders will get 25% less for every £1 they spend in store, earning 3p rather than 4p.

In November, Sainsbury's Bank cut the amount of Nectar points customers could earn by 75%, from two points for every £1 spent, to one point for every £2.