Supplementary memorandum submitted by
Thank you for the recent opportunity to give
oral evidence on Tesco's behalf to the Home Affairs Select Committee
inquiry on A Surveillance Society?
In response to Mr Denham's questions relating
to the strategic use of Clubcard data, I would firstly like to
challenge the suggestion that Clubcard is used to put local shops
out of business. This is simply not true. The primary role of
Clubcard is to enable us to thank our customers for shopping with
us and enable us to better understand what they want and try and
respond to their changing needs.
I understand Mr Denham's concerns about the
future of local shopping centres but would like to emphasise that
investment by Tesco can really benefit a local area. Not only
do our stores bring improved choice and a greater range to customers,
but the popularity of our stores can be a rejuvenating force in
a local area, increasing footfall and custom for all local shops,
and improving the vitality of the neighbourhood around the store.
Academic studies have shown such positive effects in a number
of areas where we have developed new stores, such as in Beverley,
Glasgow, the Seacroft area of Leeds and in Hampshire. I would
be more than happy to provide more detail on these studies should
this be of interest.
To turn to the specific question of the use
of Clubcard data, aggregated data can help us understand the demographics
and trading patterns of a local area. This can in turn help inform
our planning for new stores and enable us to offer customers the
best possible new shopping environment. However, all analysis
of Clubcard data for this purpose is based on aggregated and anonymised
data and confined to spending patterns and postcode data, rather
than individual customer information.
It is also worth making the point that whilst
Clubcard data can be used to understand local demographics, this
sort of information is also available through Experian or the
National Survey of Local Shopping Patterns.
Finally, as I explained during the oral evidence
session, we have worked with our customers to ensure our Clubcard
application form gives them sufficient information about how we
use their data and enables them to opt-out of marketing where
they wish to, which customers have indicated is most important
to them. We recognise how important privacy is to our customers
and ensure that we comply with all relevant legislation and good
practice guidelines in the way we process and use their personal
I hope that I have been able to address your