Clubcard brains see profits soar

Dunnhumby, the marketing company behind the Tesco Clubcard, saw a 50 per cent increase in profit and sales growth last year, the firm has reported.

Turnover rose 53 per cent to £61.9 million and pre-tax profits surged to 55 per cent to £13.1m in the year to February 2006.

The Clubcard data gathered by Dunnhumby, which gives an insight into the shopping habits of Tesco customers, has been widely considered to have contributed to the success of the retail giant.

The information is used to target specific groups of customers with promotions. Vouchers offering up to a third off a £70 shop were last month sent to 80,000 regular Tesco customers who, according to Clubcard data, did their main Christmas shop elsewhere.

Tesco increased its stake in Dunnhumby from 52 per cent to 84 per cent last year and two Tesco directors sit on its board.

Dunnhumby also works with French retail group Casino and US supermarket chain Kroger.

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