Wednesday 19 April 2023

Co-op Becomes Latest Retailer To Offer Cheaper Prices For Members Of Loyalty Scheme

Just days after Sainsbury’s launched a scheme mimicking Tesco’s successful Clubcard Prices discounts, the Co-op has announced that it is introducing lower prices exclusively for members of its loyalty programme.

The move is part of the society’s plan to invest more than £240m, across the next five years, into its membership proposition in a bid to attract a million new members.

The lower prices across its 2,400 food stores will only be available to Co-op members, with the retailer claiming shoppers could save up to £300 a year.

Detailing the areas where shoppers stand to benefit the most, Co-op said members could save an average of £8 on its freezer filler deals, £1.45 on own-brand pizzas, £1.90 on ready meals and £5 on some wines deals.

The Co-op membership scheme will also continue to enable shoppers to earn 2p in every pound spent on its own-brand products that is returned to the member’s digital wallet, and raise funds for community causes.

Additionally, Co-op announced today that it was investing a further £15m this May to reduce the cost of more than 60 key lines in stores to help customers during the cost-of-living crisis. Products included in this price round of price cuts include lines such as fresh chicken breasts, bread and milk. The average reduction is claimed to be 13% for those moving down, with the maximum reduction at 33%

Kenyatte Nelson, Chief Membership & Customer Officer at Co-op, said: “For us to champion a better way of doing business, we are aiming to grow our membership base by one million over the next five years and will accompany this ambition with a compelling member-benefits programme, which will span our entire Co-op.

“Our initial member investment will be targeted within our food business and directly supports our pure convenience strategy. Currently, around 16 million shoppers visit our stores each week or trade online with us. Our ambition is that many will convert to being Co-op members when they see the clear value this can bring to both themselves and their wider communities.”

The group stated that new member-food benefits would be followed in time by additional investment from the Co-op’s other business areas in funeral care, insurance and legal services.

The new member prices in its food stores were launched today.

NAM Implications:
  • Tesco has demonstrated that it works.
  • And what about all that resulting shopping behaviour arising
  • (think Retail Media).
  • Begging the question of how soon Aldi will introduce loyalty cards for the same reason.
  • i.e. when a retailer has squeezed all the juice from margin and stockturn…
  • …RM revenue can become the only other option

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