Tesco has confirmed it is looking at introducing FREE deliveries for its Clubcard Plus members as it looks to fight the threat posed by Amazon introducing free delivery for Prime members.
Clubcard Plus costs £7.99 (notice any similarities with Prime?) and in addition to free delivery comes with 10% discount on two shops of up to £200 each.
Amazon has 15 million Prime members, but less than 0.5% of the grocery market in the UK. Tesco has about 27% of the grocery market in the UK and an unknown number of Clubcard Plus. As it only launched in November 2019 and has probably shrunk during the pandemic, the number is likely to be small.
So should we care? I think it shows what is coming, so we should care. Tesco has started a fight with Aldi and now with Amazon. I wonder how other supermarkets are going to react – Asda needs to show it is not losing market share as it wants to get the best price when it is sold by Walmart. Amazon is not known for backing down. It feels like one of those fights in the classic old cartoons where everyone dives in!!