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The encyclopedia · Marketing & Brand · Marketing decision · 2025–2026

Tesco's 'personalised deal' on sunflower oil cost 6p more than the shelf price

The algorithm-generated Clubcard offer was priced above the standard price after a separate promotion cut it. The screenshot went viral on Reddit.

Tesco · 2026-07-15

What happened

In February 2025, Tesco — the UK's largest supermarket, with over 20 million Clubcard users — launched a trial called 'Your Clubcard Prices,' generating personalised promotional offers via an algorithm built on purchase histories analysed by Dunnhumby, Tesco's data subsidiary. Selected customers received tailored discounts through the Tesco app every Wednesday, valid for seven days.

In July 2026, a Reddit user discovered that their personalised offer for Tesco own-brand one-litre sunflower oil was priced at £1.55 — while the standard shelf price was £1.49. The 'personalised deal' was 6p more expensive than simply buying the product without the offer. The cause: after the personalised offer was generated, the product was added to Tesco's Aldi Price Match scheme, which cut the shelf price below the promotional price. The algorithm did not update.

The glitch landed in the middle of a multi-year Clubcard controversy. In 2023, Tesco moved all special offers to Clubcard-only, creating a two-tier pricing system. Consumer group Which? reported Tesco to the Competition and Markets Authority, alleging the offers lacked transparency. In February 2024, Tesco agreed to add unit pricing to all Clubcard offers. In March 2024, Tesco lost a trademark appeal to Lidl over the Clubcard Prices logo, facing roughly £8 million in rebranding costs.

Why it happened

  • The personalised pricing algorithm and the shelf-pricing system ran on separate logic with no cross-check — a promotion generated Tuesday could be undercut by a price match Wednesday
  • Tesco's strategic bet on algorithmic personalisation assumed customers would not compare the 'deal' against the shelf price, but a loyalty app makes comparison trivial — the screenshot took seconds
  • The 2023 move to Clubcard-only offers had already eroded trust; the glitch confirmed the suspicion that the personalised system was designed to extract rather than to save
What it costviral backlash; CMA referral; £8M logo lossembarrassing

The lesson

A personalised price is a promise the algorithm knows what you pay — the moment a customer shows the 'deal' costs more than no deal, the programme reads as surveillance, not service.

Aftermath

Tesco confirmed the pricing error, said such cases were 'extremely uncommon,' and assured customers they are always charged the lowest available price at checkout. The company pledged to review its pricing algorithms. The broader Clubcard Prices programme continued, but the case reinforced consumer-group arguments that loyalty-linked pricing needs regulatory oversight.

Sources

spotted an error? The club wants to know.

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →