International Expansion for Tesco/dunnhumby Partnership

UK-based retail giant Tesco is working with partner firm dunnhumby to extend its consumer insight and analysis system to match its international footprint, minus the US. The Asian and East European roll-out includes tailored versions of its pioneering Clubcard loyalty programme.

Analysts from dunnhumby are already working with Tesco in Thailand, Malaysia, Hungary and South Korea: by summertime Turkey, China, Slovakia, the Czech Republic and Poland will be added to the list. Reports suggest the expansion will give Tesco data on more than 60 million customers worldwide.

Clubcard, launched with 1995 with dunnhumby an immediate partner, is seen as a vital element in Tesco's offer and has, the supermarket says, returned about three billion pounds to loyal customers in some 13.5 million households. The programme is known as Familycard in Korea (with 3.8 million members), Membercard in China (more than 3 million), and Clubcard/Biz Clubcard in Malaysia (over 1 million). Trial schemes are operating in Thailand and Turkey. Tesco uses the data from cards to tailor promotions and contacts with individuals, while dunnhumby can also analyse consumer trends and help Tesco keep pace with customer preferences. The partners stress that data is completely anonymised.

The Korean scheme includes a Kids Club and Baby Club, while in Malaysia, a special Biz Clubcard gives holders separate counters for bulk purchase, pay & reserve and phone/fax ordering facilities, and the services of a special team in every Tesco Extra store in the country.

On the new expansion, dunnhumby CEO Edwina Dunn comments: 'We have had a very successful relationship with Tesco over the past 15 years and this gives us the perfect opportunity to help them make the most of the rollout of the Clubcard scheme around the world.'

Tesco International Director Philip Clarke says more than half of Tesco's retail space is now overseas: 'we want to make sure that as many customers as possible enjoy the great benefits that Clubcard brings. Our partner dunnhumby is a recognised world leader in providing the type of customer insight, targeting and personalisation that we need and we're thrilled to be working together on this project.'

Tesco says there are 'no current plans to roll out Clubcard in the U.S.' and that dunnhumby is not working on its customer insight in the country, although the situation 'may be reviewed from time to time'. The retailer launched its 'Fresh & Easy' stores in the American west last year and is currently combatting rumours that sales are well below expectations.

Dunnhumby, founded in 1989 by Clive Humby and Edwina Dunn, now has annual sales of more than $200m and employs more than 700 people in the UK, Ireland, France, the US and India.

Web sites are at www.tescocorporate.com , www.dunnhumby.com and www.freshandeasy.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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