Tesco - come to the US!

Excellent strategy: Don't cut prices on items that everyone purchases (ie: bananas) because then even those not hunting for a bargain will get one.

EDLP strategies are not the way to go. It works for Wal-mart, but only at a price. The only way to maintain ELDP is to puch the burden to suppliers and cut overhead, both of which are not the most ethical ways to do business.

ClubCards rule. They are great for business and customers! As a customer, I love great deals and rewards for shopping. As a business owner, I would love to know exactly what each customer purchases, when they purchase certain items, and how much they are willing to pay for those items. Sounds like a win-win situation to me.

Some additional info on Tesco ClubCards courtesy of Wikipedia.com:

When shopping at Tesco or using Tesco services (such as services from Tesco Finance), Clubcard holders receive 1 point for every £1 (€1 in Ireland) they spend, holders can also get double points on special offers and receive 1 point for every carrier bag they reuse (UK only) as part of Tesco's green initiative. These points are stored and built up and 4 times a year the holder receives vouchers to the value of points they have saved (1p/1c per point). Vouchers can be spent instore on shopping or used on Clubcard Deals where they are worth 4 times the value.
Clubcard holders are also entitled to free access to the clubcard clubs which include: wine club, baby and toddler club healthy food club, food club, Christmas club.