Asda vs. Tesco: The Battle for Grocery in the UK

Key Takeaways:

• Driven by a record rise in food inflation, UK supermarket reward apps have seen significant growth in downloads in recent quarters, growing by more than 1M in Sep’23 vs the onset of the pandemic in Mar’20, representing a 490% increase

• ASDA’s rollout of its gamification-focused rewards app in 2022 has made waves in the UK grocery space, becoming the largest app by MAUs in 2Q23, overtaking Tesco

  • Conversely, while Tesco continues to be the largest supermarket in the UK by volume of items purchased, its Grocery & Clubcard app, which includes its reward scheme, has seen an 8% QoQ decline in 3Q23 MAUs

• ASDA Reward’s success is exemplified by rising organic searches related to its reward scheme (accounting for an average of over 30% of iPhone downloads in Sep’23), as well as the app's rising popularity among mobile users of Tesco, for which ASDA Rewards was the second most popular app in 2Q23

• Tesco has significantly boosted its app engagement through cross-promotional Clubcard creatives, with a record F&F Clubcard campaign by impressions coinciding with a new high in WAUs during the week of March 27, 2023

• ASDA has carved out a unique approach in the grocery space to foster customer engagement, making gamification elements the cornerstone of its ASDA Rewards app. The success of this gamification strategy has been evident in the app’s user base growth, with Sep’23 MAUs reaching an all-time high

For more information, request the full report from reports@sensortower.com.