£2bn in loyalty points spent on Xmas

They say a dog is for life, not just for Christmas; the same, it seems, cannot be said for loyalty card points after a new study revealed that nearly half of all card-holders are looking to spend their rewards during the festive season.
And with an estimated £4.3bn worth of points still unclaimed on the likes of Tesco Clubcard, Nectar and Boots Advantage, nearly £2bn in rewards is likely to be splashed out over the next few weeks.
The study from Halifax reveals that 40% of shoppers will use points granted through loyalty cards this Christmas and more than nine out of ten (92%) of Brits have at least one loyalty card.
Those with loyalty points to spend at Christmas will use their points for food (35%) and presents (32%). The typical balance on loyalty cards is £115.06, with women on average having £103.43 compared with £128.65 for men.
The most popular loyalty card, according to the research, is the Tesco Clubcard, held by 75% of those interviewed. This was followed by the Nectar Card (71%) and Boots Advantage Card (59%).
The figures found that the average balance on a Tesco Clubcard is £72.52, £77.38 on a Nectar Card and £21.70 on Boots Advantage. However, those who earn loyalty points via a financial product have far higher typical balances – on average, £101.19.
Just over two-fifths (41%) of people said that earning loyalty points affected their decision on where to shop, while 15% of people said that they don’t mind paying more for something if it meant they were able to earn loyalty points.
Anthony Warrington, director of current accounts at Halifax, said: “It’s really important to plan and budget for Christmas spending, and we’re seeing that people are finding more innovative ways to do that this year. Building up loyalty points throughout the year is a really smart way of softening the blow, but shoppers should think carefully if earning loyalty points means paying more for goods in the first place.”

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