Tesco tightens coupon redemption policy

Tesco is tightening its coupon redemption policy and will now only accept those redeemed against the correct item being promoted.

The move follows a blunder earlier this week that saw Tesco stores in the West Midlands accepting coupons issued by dog food brand Pedigree worth £6.89, against any purchases.

The supermarket chain is now expected to start informing staff and customers of the policy changes.

The Institute of Sales Promotion (ISP) has been campaigning to stop coupon misuse and Tesco’s change of heart comes days after the industry body issued a warning to members over the potential issues with retailers’ rules on accepting coupons.

Annie Swift, chief executive of the ISP, says: “Tesco’s policy change is great news for brand owners, many of whom have been put off using coupons because of fears over possible misredemption.

“There are some retailers, however, who are still allowing consumers to redeem coupons for products they haven’t bought, and we need to get them to rethink their stance.”

Coupon misuse costs retailers and brand owners thousands of pounds through coupons being redeemed against different products or at stores that don’t even stock the relevant brand.

Pedigree marketing manager Stephen Rendu says: “Coupons are great for driving penetration and trial so anything retailers can do to minimise misuse is great for brand owners.”

Jared Keen managing director at Couponstar says: “A number of high-profile cases involving rogue providers, including the recent Pedigree coupon campaign, have highlighted just how costly a poorly controlled campaign can be, leading to confusion and a loss of confidence among retailers. However, coupons, and particularly internet printable coupons, can offer both brands and retailers a fantastic opportunity to get new customers into a store and to engage with their brands, as well as the obvious benefits to consumers.”

Tesco was not available for comment at the time this story was published.

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