Supermarket chain Tesco has lauded the continued good performance of its Clubcard and retail media offerings as it posted strong results for the first half of the year, with profit up 10% to £1.56bn in the first six months of 2024.
The retail giant also posted a sales growth of 4% (£31.5 billion) in its latest interim results.
Fuelled by numerous big-budget campaigns by BBH over the last two years, the grocer’s iconic Clubcard loyalty programme has seen its sales penetration go up in all markets year-on-year, rising by an impressive 82% in its domestic, as well as 85% in Ireland and 87% in Central Europe.
Tesco credits this stellar performance to an increased focus on driving personalisation for its shoppers, in particular its ‘Clubcard Challenged’ campaign which offered gamified promotions to 4.9 million customers.
Its Clubcard scheme now reaches an unparalleled 23 million UK households, with a further 16.3 million customers now regularly using the Tesco app.
The heavyweight retailer also praised the impact of its Tesco Media and Insight Platform which has further developed its retail media capabilities over the last 12 months, with the network’s active advertisers, campaigners per advertiser and spend per campaign all rising.
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Partnerships with WPP and Publicis will only serve to further increase Tesco’s retail media reach over the coming 12 months, with its network already surpassing 4,000 digital in-store screens. Notably, it delivered a staggering 7,600 campaigns in H1 alone.
“We’ve been working really hard to offer our customers the best possible value, quality, and service and they are shopping more at Tesco as a result,” Tesco CEO, Ken Murphy said.
“We have lowered prices on thousands of lines, launched or improved over 860 products in partnership with our suppliers and growers, and our customer satisfaction scores continue to improve across a broad range of measures.
He continued: “The combination of price, quality and innovation means we are as competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years. Our strong UK and ROI market share gains across the last year demonstrate our continued momentum.”
As a result, Tesco now expects to deliver a ‘retail adjusted operating profit’ of £2.9 billion for 2024/25, up from its previous guidance of £2.8 billion.
