Sainsbury’s launches coupon-based rewards scheme
Supermarket chain Sainsbury’s is launching a coupon-based loyalty programme.
The UK’s third largest supermarket says it will make a multi-million pound investment over five years in the scheme, which will distribute coupons at the checkout giving up to 20% off hundreds of branded and own label products.
Food manufacturers Unilever, Proctor & Gamble and Heinz have signed up for the scheme, which is Sainsbury’s biggest move in the loyalty market since becoming a Nectar card partner seven years ago.
The move follows that by rival Tesco, the UK’s largest supermarket chain, which in August doubled the number of points shoppers earn on its Clubcard loyalty scheme. Tesco says the initiative has brought in thousands of extra customers.
Tesco’s sales growth increased more slowly in the first half of the year than rivals Asda, Sainsbury’s and Morrisons. In the 12 weeks to June 13 its sales increased by 4.3%, compared to a 7.8% increase at Sainsbury’s.
Sainsbury’s customer director Gwyn Burr said: “We know that 50 per cent of shoppers take coupons and vouchers with them when they shop, and it’s a really practical way for people to stretch their budgets, especially in the current economic climate.”
“The new coupon scheme, together with the low prices and promotions we already have, means customers will get unbeatable value on the products that are most useful to them.”
The retailer plans to plans to use the Nectar scheme, as well as transaction data, to target customers with specific offers on groceries that they normally buy. It will also give out targeted vouchers to shoppers who not Nectar cardholders based on what is in their basket on that visit.
The coupons will be printed out at the retailer’s 535 stores by standalone printers.