// Tesco adds free delivery to its Clubcard Plus loyalty scheme
// The initiative comes after Amazon announced it will offer the same service to 15m UK members
Tesco is reportedly adding free delivery to its Clubcard Plus loyalty scheme as the competition against online giant Amazon heats up.
Jeff Bezos’ Amazon said last month that customers can buy cheese, baked goods, fresh meat, fruit and vegetables with no delivery fee if they subscribe to its £7.99 a month Prime service.
Tesco chief executive Dave Lewis said now that Amazon has announced a similar service to its 15 million UK members, Tesco will have to “think about how it puts delivery into Clubcard Plus,” The Sunday Telegraph reported.
- Primark and Tesco among retailers joining govt to support supply chains
- 36,000 sign petition against Tesco cleaning duties decision
The Big 4 grocer launched its loyalty scheme Clubcard Plus in November, which exists in tandem with its old membership programme on which customers can earn points.
Shoppers currently get 10 per cent off their bills twice a month, up to a maximum of £20 for each shop, for a subscription fee of £7.99 a month.
Meanwhile, Lewis said Tesco has to ensure it can match the capacity with that online demand.
The grocer has increased its delivery slots from just over 600,000 a week to 1.4 million as the coronavirus pandemic caused a massive shift to online shopping.
All supermarkets charge for delivery at present.
Tesco currently stands as the leader of the UK grocery market.
Separately, Tesco became one of the retail businesses to team up with the UK government on Friday to launch a fund to protect supply chains and support international workers.
The Department for International Development (DFID) launched the ‘vulnerable supply chains’ facility in partnership with some of the UK’s largest retailers such as Primark, Tesco, Sainsbury’s, Morrisons and Marks & Spencer.
The £6.85 million fund, which includes “investment from UK businesses to keep vulnerable workers in their supply chains in safe and secure employment” also ensures a “steady supply” of products like vegetables, coffee and clothes”.