Sainsbury’s is introducing ‘Nectar Prices’, a new loyalty initiative similar to that used by Tesco.
In an attempt to replicate the success of the Clubcard Prices discounts introduced by Tesco in 2019, Sainsbury’s will now give the 18 million members of its Nectar scheme exclusive instant savings on a range of products, including leading brands, when shopping in its supermarkets or online.
The retailer will initially offer Nectar Prices discounts on over 300 items, spanning household products, pet food and confectionary, with expansion to more categories planned. Examples include Ariel All-in-1 pods washing liquid capsules being reduced from £10.50 to £5, 24x330ml Coke Zero cut from £10 to £5, and Nescafé Gold Blend (200g) down from £8.10 to £4.
Unlike its previous system, where shoppers had to manually activate incentives within the Nectar app, the price cuts are applied automatically when the customer scans their Nectar membership card at the checkout.
Sainsbury’s will also continue to offer extra personalised discounts for customers who use its SmartShop app, with lower prices on the products they buy regularly.
Simon Roberts, Chief Executive at Sainsbury’s, said: “We are delighted to launch Nectar Prices, which will help millions of our customers save more on every trip to Sainsbury’s. There is much more to look forward to, we will keep refreshing Nectar Prices and increasing the variety of products on offer.
“It gets better, Nectar customers who shop in store with SmartShop will receive extra personalised value with Your Nectar Prices, bringing them the best prices on their favourite products. Our customers really are at the heart of every decision we make and we hope they find that Nectar Prices is an exciting way to bring them consistently great value all year round.”
In December last year, the retailer announced it was accelerating its value plan by investing a further £50m in keeping prices down – a move which meant by March this year, it had invested over £550m.
Sainsbury’s stated that its Aldi Price Match scheme will continue focusing on frequently bought fresh products, whilst Nectar Prices will cover a broader range of products.
Retailer loyalty cards have become a key focus in the battle for cash-strapped consumers amid ever-increasing competition from discounters, including Aldi and Lidl.
NAM Implications:
- Instant savings is the name of the New Norm game.
- A pointer for other retailers…
- …until the competitive edge of the initiative is neutralised.
- Meanwhile, ensure that you achieve and maintain your fair share of the action.
