why do shops like tesco promote memberships (like clubcard) that produce prices? wouldn’t they just lose money?

Question

why do shops like tesco promote memberships (like clubcard) that produce prices? wouldn’t they just lose money?

In: 0

Answer 1

They don’t lose money, they earn less money. However, memberships give customers the incentive to only shop there.

Now, if a customer already only shops there, then memberships only benefits that customer.