Tesco coupon U-turn

I think it is a bit rich for Tesco CEO Philip Clarke to be banging the anti-coupon drum when Tesco is forever running heavy price discounting and bogofs.

Are we supposed to feel sympathy because for once Tesco is on the back foot and having to stump up the cost of paying for more promotions on its own-brand products to stay competitive?

I think we must also make the distinction between retailer-generated coupons and those created by the brands themselves. Brand coupons tend to be used more tactically and quite often form part of wider integrated campaigns. The likes of Tesco are fully reimbursed for the cost of the discount the brand coupons provide. Not only is there no cost to the retailer, there are big benefits to brand coupon campaigns as they drive consumers into stores.

Matthew Butcher
Director, Pims-SCA

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