Have you heard the one about Sainsbury's halving the value of their Nectar card points?
Unfortunately it's no joke. Sainsbury's customers were today told that they will be awarded only one Nectar point instead of two for every pound spent from April 11 next year. Currently, Nectar card holders can use points to pay for their shopping, with 500 points being worth £2.50.
According to Reuters, this is "the latest sign that an escalating price war is forcing grocers to re-evaluate the merits of shopper retention schemes". They're feeling the pinch, in other words.
Furthermore, customers will no longer be awarded Nectar points every time they use their own bags, although shoppers will still be able to earn one Nectar point for every litre of fuel they purchase.
The Guardian reports:
Sainsbury’s insisted its Nectar card still offered good value. In an email to customers, it said there would be “lots of new opportunities to boost your balance faster and more value when you spend your points”.
A Sainsbury’s spokesperson said: “We are changing the way customers earn Nectar points and launching more high-value bonus events, like ‘Swipe to Win’, 10xpoints on fuel and adding more categories to our Christmas ‘Double Up’ event so that customers can make their points go even further.”
Britain’s shopping landscape is shifting, with shoppers flocking to German discount chains Aldi and Lidl, which do not have loyalty cards.
The news follows the launch of the first ever customer loyalty card at Morrisons, which guarantees to price-match other stores including Aldi and Lidl.
Sainsbury's also recently dropped Tesco from the Sainsbury’s Brand Match promotion, and now only focuses on price-matching Asda.
How do you feel about this news? Will it persuade you to shop elsewhere in search of better bargains and savings?