To compete with Tesco’s Clubcard program, Sainsbury’s has started lowering prices on more than 300 goods for Nectar loyalty card holders, Entrepreneurng report.
Similar to its rival Tesco’s popular Clubcard Prices offer, the supermarket’s Nectar Prices program offers discounts when members of its loyalty program swipe their card, download its app, or connect to their account online.
Customers who use the self-scanning Smartshop technology will receive additional, individualized discounts on certain items.
The discounts include Kellogg’s Crunchy Nut cereal for £3.75 instead of $4.80, Heinz Baked Beans for 95p instead of £1.40, and Nescafé Gold Blend instant coffee for £4 instead of £8.10. Smaller Local Sainsbury’s stores, concessions, or gas stations won’t have the deals available.
The loyalty program, which has been in operation for more than 20 years, still allows members to accrue points toward discount coupons or other benefits from partners such as Argos, Caffè Nero, or British Airways.
According to the supermarket, “Nectar Prices is a new pricing proposition that offers digital Nectar customers year-round access to a distinctive set of discounts on products handpicked for them.”
As part of the plan, which was first reported by the Sun, everything will be labeled with a Nectar Price sticker that is visible on the shelf edge in-store or adjacent to each product online.
“We are thrilled to launch Nectar Prices, which will help millions of our customers save more on every trip to Sainsbury’s,” said Simon Roberts, the chief executive of Sainsbury’s. There is more to come, and we will continuously update Nectar Prices and expand the selection of things available.”
Retailers are engaging in price wars over loyalty cards as they struggle to retain customers in the face of high inflation, which has led some consumers to turn to discounters like Aldi and Lidl.
While Lidl began a program in 2020 and revised it last year so that customers had to spend more to receive the highest level of discounts, Asda unveiled a new loyalty program this summer that was available in all UK shops and online.
To boost declining sales, Waitrose brought back free hot drinks for members of its loyalty program last year.
When Tesco announced last month that it would be decreasing the value of its Clubcard benefits in favor of lowering costs on the shelves, it infuriated some customers.
Finally, as of June 14, customers who use one of Clubcard’s reward partners to pay for a dinner out, a day trip, or a movie will be able to double the value of their Clubcard points, rather than triple them as they already can.
Source: The Guardian
