A plan by Tesco to offer massive discounts on Christmas shopping bills has been met with criticism from rival retailers.

The UK’s number one retailer is offering 80,000 customers up to a third off their shopping in a bid to win their Christmas business.

The unprecedented move comes after Tesco learned from its Clubcard data that many of its customers do their Christmas shop elsewhere.

The chain’s customers have been sent a £5 voucher and the offer of £18 off their bill if they spend more than £70 - the equivalent of a third off.

Rivals claim the offer, which could spark a price war among multiplies, will see the retailer losing money. An Asda spokesman told the Times: “We are surprised they are doing such an aggressive and targeted price cutting given the concerns of the Competition Commission about local pricing.”

A spokesman from Tesco told the paper: “This is a national targeted promotion. We know that a small number of customers shop with up year round, but the, for one reason or another, try somewhere else at Christmas. We hope that this promotion will encourage them to try some of our fantastic Christmas products at great prices.”

Tesco Clubcard monitors customers’ shopping habits, such as when they shop and how many calories they consume. Based on this data, the retailer can make assumptions about its customers, such as whether they drive cars. They can also tell if the customer has not bought enough goods to last a week, inferring that they may be shopping elsewhere.

Topics