Sainsbury's Unveils Major Shopping Overhaul with Tesco Clubcard-Style Rewards

Sainsbury's Expands Personalized Discounts to Checkouts

Sainsbury's has taken a significant step in enhancing its loyalty program by expanding its personalized discounts scheme. The supermarket chain recently rolled out its "Your Nectar Prices" program at checkouts across Britain, starting from 25 July. This initiative allows shoppers using the Nectar card to access up to 10 personalized discounts every week on items they regularly purchase or that are recommended to them.

The expansion means that customers can now enjoy these discounts not only through the Nectar app or website but also at the checkout counters. However, it’s important to note that the discounts must be "unlocked" each week via the Sainsbury's website. To access the savings, shoppers need to be digitally registered with Nectar, which can be done either online or through the Nectar app.

Once registered, loyalty members should click on the "tap to unlock" button in the Nectar app or website every week. If this step is skipped, the personalized discounts will not be applied during their shopping trip. Additionally, for those accessing the scheme via Sainsbury's, it is necessary to have version 11.8 or later of the Nectar app available on the Apple App Store or Google Play Store.

The offers available under the Your Nectar Prices program are valid for seven days before new selections are released every Friday. According to Sainsbury's, the program could save customers over £150 annually. The supermarket has generated more than 17 billion personalized discounts through the scheme, and the expansion to checkouts is expected to allow over 8.5 million more shoppers to access these discounts while shopping in-store.

Shoppers can still benefit from Nectar Prices, which are discounted prices available to all Nectar customers on selected products. They can combine both schemes for maximum savings. For those who prefer not to register digitally, Sainsbury's noted that there are other ways to access great prices, such as Nectar Prices and the Aldi Price Match campaign.

Enhancing Customer Experience Through Personalization

This move is part of Sainsbury's broader strategy to provide more personalized offers to its customers. Mark Given, chief marketing, data and sustainability officer at Sainsbury's, emphasized the importance of making loyalty personal. He stated that while Nectar Prices are available to everyone, customers appreciate offers tailored specifically for them.

Given added that every week, over a million customers make the most of their personalized discounts, and by rolling out the program to checkouts, Sainsbury's is opening the door for millions more to grab fantastic offers on the items they already purchase and possibly discover new favorites.

Mixed Reactions from Shoppers

Responses from shoppers on X have been mixed. One customer expressed frustration about the timing of the weekly discount emails, stating that they arrive early on Fridays, which is too late for many shoppers who complete their main shop before then. Another shopper criticized the requirement to unlock discounts each week through the Nectar app, calling it inconvenient.

Launched four years ago, Your Nectar Prices covers a wide range of product categories, including fresh food, household items, health & beauty, baby and pet care. According to a survey from consumer group Which? last year, 74% of shoppers have a Tesco Clubcard, while 50% have a Nectar card. Having a Tesco Clubcard provides access to Clubcard Prices, which are available on selected products at Tesco.

Supermarkets are increasingly relying on loyalty schemes to attract more shoppers and boost their profits. In November, the Competition and Markets Authority (CMA) reported that supermarket loyalty schemes do offer real savings. The CMA analyzed approximately 50,000 grocery products on promotion and found that 92% offered genuine savings against the usual price, despite some shoppers' perceptions that "usual" prices were inflated to make loyalty deals more appealing.

The watchdog's report found "very little evidence" of supermarkets inflating their "usual" prices to make loyalty promotions seem like better deals. This suggests that loyalty programs continue to provide value to consumers while helping supermarkets maintain competitive advantages in the market.