Originally Posted by dnw
Just a small point but a clubcard point is only worth 1p to the customer- it does not cost Tesco that much. I don't know what Tesco's margin is on most products but I assume its quite high....
Tesco (like other major supermarket chains in Western Europe) have a profit margin of under 5%. It's a tough, cutthroat business, and one of the reasons why supermarkets are dipping these days into everything else like financial services and sales of big electrical items is because it is the only way to increase profit.