Nectar apes Clubcard Prices as grocery spend drops

Sainsbury’s is ramping up the battle for shopper loyalty by taking a leaf out of Tesco’s book with the launch of Nectar Prices, offering discounts on hundreds of products in supermarkets and online at the checkout.

The strategy provides Nectar members with exclusive deals when they swipe their card or app in-store, or link it to their Sainsbury’s account online. Tesco Clubcard Prices was first launched in September 2019, while Morrisons set up a similar scheme in October last year.

Nectar Prices sees shoppers benefit from lower prices on selected items, such as Nescafé Gold Blend instant coffee costing £4 for cardholders rather than £8.10, Heinz baked beans costing 95p instead of £1.40, and Tanqueray Gin costing £19 instead of £27.50.

In a statement, the supermarket giant said: “Nectar Prices is a new pricing proposition that offers digital Nectar customers all-year-round access to a unique set of discounts on products handpicked for them.

“Items will be clearly marked with a Nectar Price label visible on the shelf edge in-store or next to each product online.”

Members still earn Nectar points on products they buy, however, the deals will not be available in Sainsbury’s locals, concessions or petrol stations.

The move coincides with a new report from Barclays which shows consumer card spending grew just 4% year-on-year in March, less than half the latest inflation rate of 9.2%, as Brits made further cutbacks to cope with the cost-of-living crunch.

While home improvement and DIY stores enjoyed a seasonal boost, and the latest season premieres of popular TV shows fuelled a rise in digital content and subscriptions, spending on groceries increased 7.1%, well below the latest ONS food price inflation rate of 18.2%.

The research reveals that 88% of shoppers say they are concerned about the impact of rising food prices on their household finances, and more than six in 10 (62%) are finding ways to reduce the cost of their weekly shop.

Over half (53%) of these value-seeking consumers are cutting down on luxuries or one-off treats for themselves, while a sizeable proportion are planning meals in advance to avoid wasting food, or using vouchers to get money off their grocery bill (both 38%).

Barclays director Esme Harwood said: “The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise. Cutbacks are also impacting restaurants, with a number of cash-strapped consumers even avoiding social plans that involve meals out.

“Hospitality and leisure businesses will be hoping that the busy Bank Holiday period provides a boost to counteract consumers’ everyday cost-savings. While predictions for the Coronation weekend are lacklustre, the results from Mother’s Day are more encouraging, demonstrating that Brits are still taking advantage of one-off moments to go out and celebrate.”