Boots unveils budget line as 500,000 join loyalty club

Boots has hailed the success of its recent Advantage Card membership recruitment drive to coincide with the launch of a new “everyday” budget brand to help customers combat the cost of living crisis.

The retail group launched a major push for the Advantage Card in April – including its first dedicated TV ad for the loyalty scheme – investing £3m in the campaign in April and May alone.

It centred on the expansion of the Price Advantage scheme, which allows loyalty card members to access products at exclusive lower prices, similar to Tesco’s Clubcard Prices.

Boots UK chief executive Seb James has now confirmed that the activity led to 500,000 new sign-ups to the scheme, which he added was “the biggest number of new joiners for some time”.

The programme already has 11.7 million active members and is one of the most generous points-based retail loyalty schemes in the UK, with members receiving 4 points (worth 1p each) for every £1 spent, regular personalised offers and free access to clubs. By comparison Tesco Clubcard offers 1 point (worth 1p) for every £1 spent and Nectar offers 1 point (worth 0.5p) for every £1 spent.

The move comes as the 60-product budget range – including toothpaste, shower gel shampoo and period products – launches in more than 1,000 stores today; all items cost £1.50 or less.

The health and beauty brand has said that it has created the range to help shoppers find low-priced toiletries as the price of basic items continues to grow; it has also frozen the price of up to 1,500 products until the end of the year.

Boots UK head of beauty Jenna Whittingham-Ward said: “At a time when many people are facing choices between heating and eating and we’re all bracing ourselves for a winter of feeling the pinch more than ever, we’re offering a no-compromise range to help customers make small everyday switches to help save money.

CEO James added: “Sales of beauty products at Boots continue to rise, suggesting customers still want to treat themselves to new makeup, perfume or skincare, despite cost of living pressures.

“During the last recession, we experienced two things: firstly, the ‘lipstick effect’, which is the determination to continue purchasing small treats, and secondly, increased spending on own label and promotions. These trends have returned.”