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Sainsbury's dismissed the card as a gimmick but were soon to lose out on sales to Tesco and in the latter part of 1995. Offering points on purchases using the card and giving a small rebate to loyal shoppers. Dismissing the initiative as nothing new, Sainsbury did not realize that Tesco was capturing valuable information with every swipe of the card and building a powerful database of customers, which it gained through card membership information.
The card provided Tesco with vital customer information such as what products they were and were not buying, where they were spending their time in the store, and where they were not, as measured by spending...
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