Revealed
NECTAR NOT SO SWEET
Sainsbury’s is changing Nectar points — and this is how you’ll lose out
Shoppers beware — the supermarket is dropping the ‘one point per £1’ reward and you'll have to pick offers on its app
SAINSBURY’S shoppers have been dealt a blow after the super-market announced rewards will be slashed for all but its loyal and organised customers.
It is trialling a scheme where shoppers will no longer automatically earn a Nectar point for each pound spent — so you will not necessarily get any points for popping in to buy bread or milk.
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Instead, you will collect points by choosing offers in advance via the Nectar app.
But the change has prompted a backlash from many who claim they do not have the time.
Although Sainsbury’s claims some customers will be better off, the move has widely been seen as the latest setback for shoppers in a shrinking rewards market where struggling retailers are battling to survive.
For Sainsbury’s, it is a case of trying to stop loyal customers from straying into discounters Aldi and Lidl.
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You will have to pick offers in advance on its Nectar appIt comes after Tesco said in January it would cut the value of its Clubcard vouchers with partner firms such as Pizza Express, Zizzi, Cafe Rouge and London Zoo from four times to three times what they are worth in shops.
Many credit card providers have also reduced their rewards or withdrawn products in recent months, following an EU ruling which limited the amount they can charge retailers for processing payments.
How it compares to rivals
TESCO: Get vouchers once you have saved 150 Clubcard points. Spend £1 in store, or £2 on Tesco Fuel, for a point worth 1p. If you spend £50 a week, or £2,600 a year, you get 2,600 points, or £26 in vouchers.
MORRISONS: The Morrisons More card gives five points per pound spent. Get a £5 voucher for 5,000 points. A £50 weekly spend will get you 13,000 points a year, so £13 to spend.
ASDA: No loyalty scheme, but promises to be ten per cent cheaper than Sainsbury’s, Tesco, Morrisons and Waitrose.
WAITROSE: MyWaitrose offers discounts and free tea or coffee when you spend, plus cash off selected newspapers if you spend £10 or more, a free copy of Waitrose Food and 20 per cent off the fish counter every Friday.
THE CO-OP: Buy Co-op products and services (from a bread to a funeral plan), and five per cent of the spend will go into a membership account to use on your next purchase.
ICELAND: Get a £1 bonus for every £20 you save on its Bonus Card, which you can use to pay at the store. Also offers money-off coupons.
ALDI AND LIDL: No loyalty schemes. Both say they focus on low prices instead.
Popular products including the TSB Avios credit card and MBNA’s entire range of airline cards have been withdrawn. The Lloyds Bank Avios card is now restricted to branch applications and the Hilton Hotels Barclaycard has also been closed to new customers.
Cutbacks to Sainsbury’s loyalty scheme have angered some shoppers who rely on Nectar points for their budget.
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Dad Simon Ackroyd, 52, from Bedford, says: “I used to shop in Sainsbury’s all year then use the Nectar points to fund Christmas. It was easy — all you needed to do was swipe your loyalty card.
“I’m not sure the new system will work for me, as I don’t have time to faff around on the app every week looking at offers. I just want to grab my shopping and go.”
Sainsbury’s is trialling the new system on the Isle of Wight — and says if it does not work, it will not go ahead.
Here Mr Money looks at the changes and what they mean for shoppers who rely on Nectar bonuses.
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Quick-fire guide to the changes
What is planned?
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Under the proposed new system, shoppers will choose five “favourite” offers via an app or email which will always give them bonus points.
In addition to these, each Friday morning customers will be sent a range of new offers based on their shopping habits which they can choose to load on to their Nectar card and use within the next seven days.
The store said on average, customers will be offered eight or nine bonus point offers each week, but there is no upper limit. This will also vary from customer to customer.
Shoppers will only collect points on items they have selected, meaning they won’t simply earn points because they have spent money at Sainsbury’s.
In terms of how many points you earn, there is no set minimum or maximum as this will vary depending on the product and customer.
The store said the new scheme takes a customer’s loyalty into consideration. For example, if a “loyal customer” – someone who spends often in Nectar stores including Sainsbury’s and Argos – buys a box of eggs, they will receive more points for the box of eggs than another shopper.
Will I lose out?
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The new system means you will earn points on fewer items, but when you do earn them you will earn more points per item.
It isn’t yet clear whether people will get enough relevant offers to make up for the loss on other goods.
Will the value of points earned change?
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No, they are worth the same even for those taking part in the trial, so 500 points will still be worth £2.50.
Sainsbury’s also says there are no changes to the Nectar scheme with other Nectar partners, such as Argos, Dunelm and eBay. Points can also be redeemed in the same way in stores or boosted via partner offers.
But the app will also include a new “goals” section offering “luxury items” for points, such as a bottle of champagne for 4,000 points.
Sainsbury’s has confirmed couples will still be able to pool their points.
Will choosing the offers be a hassle?
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You can choose the offers on a smartphone app while out and about, and your decisions are logged straight away. So it shouldn’t be too much hassle if you have it set up on your phone.
If you don’t have a smartphone, there is an alternative. You will receive a weekly email from Nectar showing you what offers are available to you.
If you click a button in the email, the offers will be loaded to your Nectar account and you will receive the points automatically if you shop and swipe your plastic Nectar card as usual.
But you must remember to actively select the offers using either method – otherwise you won’t get anything.
What’s the verdict?
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It’s worth getting the app and looking at what you are being offered, but as with all reward schemes, don’t pay more for poor value bonuses you do not want or need.
If the offers seem to be good value deals, then it is worth taking advantage. Otherwise, go to shops which offer the lowest prices.
Anika Newjoto, editor of supermarket loyalty website shopperpoints.co.uk, said: “Dropping ‘one point per £1’ base earning on your Sainsbury’s spending and moving purely to a bonus points model is quite risky.
“I’m not sure that people are willing to spend time studying the Nectar app before every shop to see what bonuses they can get.”
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