Tesco direct charges for _click and collect_ – aol money uk
Tesco Direct has emailed its customers, saying that from 1 February it will charge £2 for ‘ click and collect’ services on items costing less than £30. It may well signal a trend that is set to spread far further, and customers are not happy. At the moment, when ordering online from Tesco Direct, shoppers can simply choose ‘click and collect’, and save themselves a delivery charge. The service is popular among bargain-hunters, and those who want to be able to pick up at a time that suits them. From 1 February, that option is going to get more costly.
Tesco said it had introduced
the charge to make the service sustainable, because at the moment it isn’t able to cover the cost of getting the items to stores. It already charges £4 for ‘click and collect’ on grocery shopping worth up to £40. The trend It’s not the first to make the move. John Lewis also charges £2 for ‘click and collect’ orders of under £30 picked up in a branch of John Lewis or Waitrose.
The move was introduced back in July and seems to have worked in the company’s favour. It said over Christmas that ‘click and collect’ had grown 16% and now accounted for half of all online orders.
It added that shoppers were spending more per ‘click and collect’ order – possibly to avoid having to pay the delivery charge. Supermarket Sweep – Tips & Advice Supermarket own brands shock price rise Which supermarket scores on price and taste? Deals of the week Compare cashback credit cards It’s unlikely to be the last to introduce charges either.
All the major retailers face a cost every time a customer selects for an item to be delivered to a store, and as click and collect grows, that cost is eating into their profits. The positive experience of John Lewis will have allayed many firms’ fears about bringing in a charge, and the fact that Tesco has followed suit will certainly encourage other retailers to consider it. Anger However, customers have not been impressed with the announcement from Tesco. Some have been confused as to how this could be justified. One posted on the Tesco Facebook page: “Exactly where are you delivering too if I’m paying for the pleasure of collecting?” Another wrote: “I’d rather take a chance of items being in the stores, or buy from somewhere else, but will not pay for something to be delivered to a store, when trucks will be offloading anyway!!
What’s to pay for – a little bag & a label?? Two quid? On yer bike Tesco!!” Others pointed out that if it wasn’t going to save them a delivery charge, the service was redundant. One tweeted: “Tesco going to charge £2 for click and collect, no point in doing it then in my opinion…
” And several said they planned to vote with their feet. One Tweeted simply: “Oh ok…. Amazon it is then”. Another posted to the Tesco Facebook page: “Well that’s me not ordering anymore, which as another side effect won’t get me into your store (it’s not the closest to our home) which means you lose the whole customer. Not very smart marketing to be honest.” Another agreed: “I only really shop in Tesco if I am collecting a Tesco direct order. Now you are charging for that I doubt I’ll be shopping in Tesco again!
Ah well.” The subtle manipulation starts as soon as you enter the store when you are assailed by the smell of flowers and fresh bread, which are often placed near the door. The smell is intended to put you in a good mood and to get your salivary glands working. You are also more likely to pick up these higher-ticket items when your cart is empty. Similarly, fresh produce like fruit and vegetables (one of the most profitable sections at the supermarket) is also usually at the front because the bright colours are more likely to lift your mood than bland cartons and cans. Mist is sometimes sprayed on the fruit and veg to make them look fresh but can actually make them rot faster.
Pricier items are placed at eye height. The cereal aisle is a good example, where healthier cereal is at the top, big bags of oats and other bargain cereals are generally on the bottom shelf and more expensive, big-name brands are at eye level – easy to see and reach.
Some items are deliberately placed at children’s eye height, such as highly-advertised cereals. You cannot assume that items on sale at the end of an aisle are a good deal. Those endcaps are sold specifically to companies trying to promote a product, observes Underhill, consumer expert and author of What Women Want: The Science of Female Shopping .
The music you hear is not just a random playlist. Dubbed ‘Muzak,’ it is carefully selected by an ‘audio architect’ who has analysed the store’s demographic. Douglas Rushkoff, author of Coercion: Why we listen to what they say (1999), says grocery shoppers respond best to Muzak that has a slower tempo, making a whopping 38% more purchases when it is played overhead. By contrast, fast-food restaurants use Muzak that has a higher number of beats per minute to increase the rate at which a person chews. There are 74 Muzak programmes in 10 categories, ranging from indie rock to hip-hop and classical, which are mapped out in 15-minute cycles that rise and fall in intensity using a technique known as ‘stimulus progression,’ writes Martin Lindstrom, marketing consultant and author of Brandwashed: Tricks Companies Use to Manipulate Our Minds and Persuade Us to Buy . Shopping carts are getting bigger because research shows that consumers buy more when they can fit more in the cart. Multi-packs are also getting bigger, because the more people buy, the more they tend to consume.
If you used to buy a six-pack of coke and drink six cans a week but now buy a 12-pack because that’s the new standard size, you’re probably going to start drinking 12 cans a week, Jeff Weidauer, former supermarket executive and vice president of marketing for retail services firm Vestcom, told Reader’s Digest . Customers think that when they buy in bulk, they get a better deal. But that’s not always the case. Work it out yourself, and only buy as much food as you can eat before it goes off. Supermarket pricing is often described as a ” dark art “. Are offers like ‘Was £3, Now £2’ or ‘Half Price’ genuine?
In Britain, supermarkets have been caught out on putting up prices shortly before discounting them heavily. The Office of Fair Trading clamped down on ‘yo-yo pricing’ and eight major supermarkets (Aldi, Co-Op, Lidl, Marks and Spencer , Morrisons, Sainsbury’s , Tesco and Waitrose) signed up to a set of principles drawn up by the watchdog in late 2012. The principles also say that pre-printed value claims such as ‘Bigger Pack, Better Value’ must be true. However even with those principles, the question is whether products were ever priced realistically.
Two for one offers are a money illusion, as you may end up buying more than you need. The Office for National Statistics does not include two for one offers in its inflation numbers on the grounds that they are not a genuine discount, as consumers may not have wanted the second item. Another well-practised trick is to make promotions very specific and put the sign next to a full-price item. Often customers get confused and end up grabbing the wrong item. Lindstrom says the average consumer tends to remember the price of only four items: Milk, bread, bananas, and eggs. They often don’t have the faintest idea whether they are getting a good deal or not. But the bulk of what shoppers buy they buy every week. So if you are really methodical and keep your old receipts, you would know when something is on sale and stock up then. Chocolates and other sweets have long adorned checkout counters where bored kids are nagging their parents to buy them a treat. Supermarkets have come under pressure from the government to move chocolate away from checkouts and some have responded. Lidl has just banned sweets and chocolate bars from the checkout of its 600 UK stores and vowed to replace them with dried fruit and oatcakes.
Sainsbury’s has a policy of no confectionery next to checkouts in its supermarkets, but not in smaller convenience stores, similarly to Tesco.