You are here: Home - Household Bills - News -

Shopper fury as Tesco hikes minimum spend for online delivery orders

0
Written by: Rebecca Goodman
30/03/2023
Tesco has made two changes to its online shopping system, increasing the minimum spend and the fee customers pay if they don’t meet the threshold.

From Tuesday 2 May, customers will need to spend at least £50 for home delivery orders. If you fail to reach this amount, you will pay a £5 charge.

This is an increase from the current minimum spend of £40 for getting your shopping delivered, and a fee of £4 if you spend less than this amount.

However, the minimum amount customers need to spend to qualify for the click and collect service will remain at £25, with the surcharge for baskets under this standing at £5.

As with the current system, if substitutions take an order below the £50 minimum spend, you won’t have to pay the £5 fee.

Customers with a delivery saver plan (off-peak and anytime) will also need to meet the minimum basket spend of £50 to avoid paying an extra fee.

However, for any customers incurring the charge, Tesco confirmed you‘ll accumulate Clubcard points and these will be added to your account when you check out. This will also apply if you have a delivery saver plan.

It comes as the supermarket giant recently announced it was shaking up its Clubcard scheme, making it less generous to customers.

From 14 June, shoppers exchanging their Tesco Clubcard vouchers for rewards to be spent at ‘partners’ across travel, days out and restaurants will receive twice their value, rather than the current triple value.

Customer fury

Tesco customers have reacted with anger on social media sites.

One shopper tweeted: “Why on earth are Tesco increasing the minimum basket charge to £50 from the 2nd May, totally the wrong year to do this when everyone is struggling, that’s an increase of £10, think I will be cancelling my delivery pass.”

Another posted on Twitter: “I note with dismay your intended increase of minimum basket amount for home delivery. A £10 increase is huge. As a disabled, housebound customer this will impact me greatly. My income is already limited and I have to rely on home deliveries. Please think again.”

And one shopper wrote: “Tesco have increased their online minimum basket to £50……oh great, just what we need in the middle of a cost-of-living crisis. I only shop online due to my long working hours but think I may now give my nearest supermarket Aldi a go.”

The move by Tesco comes at a time when food inflation is soaring and millions of people are struggling to afford their supermarket shopping.

Food prices have hit a new record high, increasing to 17.5% in March, the ninth month in a row that food inflation has hit double figures. This means households who don’t change the way they spend will have to fork out an extra £837 a year to pay for their food shopping, according to the British Retail Consortium.

Tesco is the biggest UK supermarket with a market share of 26.9%, according to data from Kantar, yet it faces rising competition from other supermarkets and discount stores, who have all been striving to attract and retain new customers in the face of soaring grocery costs.

How do Tesco’s online shopping fees compare?

From 2 May Tesco shoppers will need to spend at least £50 for free delivery, or face a £5 fee for home delivery.

This is one of the highest minimum basket spends across the major supermarkets.

The only major supermarket with a higher minimum spend before it offers free home delivery is Ocado, which charges between £2.99 and £6.99 for orders of between £40 and £75.

At Sainsbury’s, the fee is £7 unless shoppers meet a minimum spend of £40 and at Asda, there is a minimum spend of £40, otherwise shoppers are charged a £3 fee.

At Morrisons and Iceland there’s a minimum spend of £40 and a fee of £3 if this isn’t met.

What does Tesco say?

A Tesco spokesperson said: “To ensure we can continue to serve our online customers as effectively as possible, from 2 May we are making some changes to our minimum basket threshold, the first change we are making in nearly eight years. For the vast majority of our customers, there will be no change to the way they shop.”

It is understood that the average basket value for online orders sits above £90.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week