Sainsbury’s is reining in its loyalty spend by slashing in half the number of points customers will earn through the Nectar programme.
From April next year, Sainsbury’s customers will only receive one point for every pound spent compared with two under the current scheme.
Customers will also no longer receive “green” points for reusing plastic bags, but shoppers will still earn one point per litre of fuel.
In a post on its website, the retailer said: “Sainsbury’s will be bringing you lots of new opportunities to boost your balance faster and more value when you spend your points. Look out for the Nectar ‘Thanks a million’ event in store from October 17 to 19 for starters.
“At times like Christmas, Sainsbury’s will be holding bigger and better Double Up events to give you great value when we know it matters most to you.
“Plus, there are lots of other places to spend your points like Pizza Express and Vue cinemas that are available all year round. Many offer more value than the standard 500 points = £2.50, so it’s well worth taking a look.”
The move comes as the traditional supermarkets are coming under increasing pressure from the likes of Lidl and Aldi, which eschew loyalty schemes to concentrate on low prices throughout their stores.
Tesco Clubcard is also under review, in new boss Dave Lewis’ strategic overhaul. Last week, Clubcard co-founder Clive Humby lashed out at Tesco’s strategy, claiming the supermarket giant’s obsession with instore promotions is making the scheme virtually irrelevant.
Meanwhile DunnHumby – the company which runs Clubcard – is the subject of takeover speculation, following reports that private equity specialist TPG is eyeing up the business, valued at £2bn.
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