Sainsbury’s launches new Nectar card discount scheme to encourage customers amid cost of living crisis

Supermarket revises reward offering as economic turmoil boosts rivals

Sainsbury’s new Nectar Price discount scheme advertised in store (Sainsbury's)

UK supermarket giant Sainsbury’s is launching a new reward scheme for its 18 million Nectar card holders that will grant discounts on over 300 items as the cost of living crisis continues to eat into household budgets.

The “Nectar Prices” initiative comes into effect from Tuesday and sees the retailer adopt a strategy closer to Tesco’s Clubcard offering, cutting the cost of everyday items like Heinz Baked Beans, Coke Zero, Nescafe Gold Blend and Ariel All-in-1 laundry pods for customers in store and online who scan their card or use the Nectar app.

Those who use the company’s self-scanning Smartshop system in its stores will meanwhile also receive further personalised discounts on other items.

The offers will not be available in Sainsbury’s smaller Local stores or petrol stations, however.

CEO Simon Roberts said he hoped the scheme “will help millions of our customers save more on every trip to Sainsbury’s” and pledged to “keep refreshing Nectar Prices and increasing the variety of products on offer”.

Sainsbury’s says that it issued its one trillionth Nectar point in December 2022, meaning that over £5bn in points have been gifted to customers over the last 20 years, of which £220m-worth were distributed last year.

That same month, it also announced it would be accelerating its value plan by investing a further £50m, meaning that it has invested over £550m over the past year as part of a bid to hold back price rises on the shelves.

The UK’s larger supermarkets have faced increased competition from cheaper rivals like Aldi and Lidl since the cost of living crisis struck last year, with many customers prepared to shop elsewhere in the interest of saving money.

That has already forced the likes of Waitrose and Asda to rethink their customer loyalty offerings in order to tempt buyers back to their stores, with Sainsbury’s just the latest to follow suit.