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Sainsbury’s To Offer Tailored Discounts Via Nectar Scheme

Sainsbury’s is stepping up its price battle with rivals by offering customers significant discounts specifically tailored to their shopping habits.

From next Wednesday, members of its Nectar loyalty scheme will have access to exclusive discount prices for their favourite products via the Nectar app. Shoppers will be able to view their personal My Nectar Prices discounts and redeem them in store by checking out through Sainsbury’s self-scanning service, SmartShop, either with handsets or on their smartphones.

Analysts highlighted that ultimately this could reduce the number of manned checkouts required in stores, potentially cutting costs for Sainsbury’s.

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The discounts are based on consumers’ shopping habits, meaning pre-existing digital Nectar customers will be offered up to 30% off products tailored to them. The reductions on a selection of up to ten branded and own-label products can be used across multiple purchases within a validation period, which ranges from one week to a few months depending on the offer.

Anyone signing up to the Nectar App for the first time will initially receive a selection of discounted prices across the Sainsbury’s range, which will then become customised to their shopping habits the more they use the digital Nectar card.

Sainsbury’s now has eight million people registered with the Nectar app and is targeting 10 million by the end of next year.

Back in February, Sainsbury’s followed Tesco in promising to match prices at Aldi on hundreds of everyday grocery items as part of a bid to halt market share losses to the discounters.

Sainsbury’s stated that the My Nectar Prices offer will work alongside its Aldi Price Match discounts. The retailer claims that its latest initiative could save a weekly shopper upwards of £200 a year when taking full advantage of the scheme.

Mark Given, Chief Marketing Officer at Sainsbury’s, commented: “We’re always looking for new ways to offer our customers the best value and we’re thrilled to be launching My Nectar Prices.

“What’s great about My Nectar Prices is that customers’ discounts will be tailored to personally suit each shopper based on their previous shopping habits, meaning they will receive discounted prices on products they love and frequently use.”

Tesco’s ‘Clubcard Prices’ promotion also offers lower prices to members of its loyalty scheme. This has proved popular with shoppers, but the offers are not personalised.

NAM Implications:
  • Personalisation of discounts will be a first, for a while…
  • …given anything successful in retail is invariably copied.
  • So, anticipate tweaking by other mults until a dynamic equilibrium is achieved.
  • Best for suppliers to propose initiates that optimise this new reality…
  • Ahead of your rivals…