Tesco launches Christmas campaign early

LONDON, Oct 22 (BestGrowthStock) – Tesco (TSCO.L: ), Britain’s
biggest retailer, launched its bid to attract cash-strapped
Christmas shoppers on Friday, saying it was offering price
cuts, deals and loyalty rewards worth some 1.3 billion pounds
($2 billion).

The move, which comes three weeks earlier than a similar
announcement last year, could mark the start of a fierce battle
between Britain’s top supermarket groups this festive season,
as shoppers worry about rising taxes and public spending cuts.

Tesco said it was offering price cuts and promotions,
including buy-one-get-two-free deals, which it estimated would
save customers 800 million pounds between now and Christmas.

It expects to issue 200 million pounds of vouchers to the
16 million members of its Clubcard loyalty scheme with their
regularly quarterly statement in November, followed by a
further 70 million at an interim statement in December.

Clubcard members will also receive coupons with their
statements worth an estimated 200 million pounds, while the
group will issue vouchers allowing members to double the value
of their loyalty points on a range of products, which it said
was likely to be worth a further 50 million to shoppers.

Last year, Tesco announced on Nov. 12 that it expected
price cuts and promotions to save its customers around 250
million pounds in the run up to Christmas. It also paid out 216
million pounds of Clubcard vouchers in November and December
that year.

Asda, Britain’s second-biggest supermarket group owned by
U.S. retailer Wal-Mart Stores Inc (WMT.N: ), told Reuters earlier
this week it was already seeing shoppers buying for Christmas
in a bid to spread the cost. [ID:nLDE69E1DW]

Despite rising food prices, Britain’s supermarkets are
seeing only modest sales growth as consumers focus on
promotions. [ID:nLDE69A07R]

British retail sales fell for a second month in a row in
September, adding to signs of an economic slowdown a day after
the government announced details of 81 billion pounds of
spending cuts. [ID:nLDE69K0UP]
(Reporting by Mark Potter; Editing by Richard Chang)

Tesco launches Christmas campaign early