Sainsbury’s today took on Tesco’s Clubcard by launching major changes to its Nectar loyalty card that has seen it widened to include discounts on 300 products.
The supermarket has introduced ‘Nectar Prices’ on the products in major stores and online for members of its scheme as it aims to rival the perks offered by competitors.
Among the new deals for those using Nectar include Heinz Baked Beans discounted by a third, now costing shoppers 95p instead of £1.40. And the price of a 200g jar of Nescafe Gold Blend is cut by more than half for Nectar holders, from £8.10 to £4.
The changes bring the scheme closer to that operated by Tesco, which launched its Clubcard in 1995 before adding the ‘Clubcard Prices’ element in May 2019 that offers lower prices on products across the store for those who have the card or app.
Sainsbury’s shoppers must remember to scan their Nectar card or app at the check-out to benefit from the lower prices, which came into force this morning – and the discounts are not available in Sainsbury’s local stores, concessions or petrol stations.
And those who want to use personalised deals of up to 30 per cent off which they get through the ‘Your Nectar Prices’ scheme must still always use the ‘Smartshop’ app or handset to scan each item as they go in store – and not just scan at the end.
Those who utilise Sainsbury’s Nectar scheme will see significant savings while shopping
Sainsbury’s, which is Britain’s second biggest grocer by market share, has been striving to compete with rivals in various ways such as its Aldi price-match scheme.
|Product||Nectar Price||Usual Price||Discount|
|Aperol Aperitivo 70cl||£10.00||£16.00||38%|
|Corona Extra 12x330ml||£9.00||£14.00||36%|
|Ariel All-in-1 pods washing liquid capsules original (39 washes)||£5.00||£10.50||52%|
|Coke Zero 24x330ml||£5.00||£10.00||50%|
|Nescafe Gold Blend signature jar 200g GB||£4.00||£8.10||51%|
|Elvive Colour Protect Shampoo 400ml||£2.50||£4.50||44%|
|Elvive Colour Protect Conditioner 300ml||£2.50||£4.50||44%|
|Kellogg’s Crunchy Nut 720g||£3.75||£4.80||22%|
|Heinz Baked Beans Tomato Sauce 415g||£0.95||£1.40||32%|
|Oral-B Pro 3 3500 Cross Action Black (+Travel Case)||£45.00||£100||55%|
Supermarket inflation hit 17.5 per cent in the month to March 19 – up from 17.1 per cent in February, according to the latest data from retail analysis firm Kantar.
But shoppers at Sainsbury’s who use the Nectar scheme will now see significant savings on a range of items such as household products, pet food and confectionery. For example, a 24-pack of 330ml Coke Zero that is normally £10 will be available for just £5.
Similar savings can be found on Ariel All-in-1 pods which, with Nectar, are on offer for £5 instead of the typical £10.50.
The supermarket says its Nectar Prices scheme will expand into more product categories later this year.
Members still earn Nectar points on products they buy – which can then be spent on other brands such as Argos, Caffe Nero or British Airways.
And shoppers will also continue to get personal offers of up to 30 per cent each week through the Your Nectar Prices benefit.
Sainsbury’s bought Nectar, which has about 18 million members, in 2018.
But discounts are currently only offered to customers who self-scan their items.
Following the changes, Nectar offers will now be applied when shoppers scan their Nectar card at the till – the same way that Tesco Clubcard prices are applied.
Sainsbury’s has introduced lower prices on hundreds of products in supermarkets and online for members of its loyalty card Nectar, in a new scheme called ‘Nectar Prices’
Customers shopping online will have their discounts applied automatically if their Nectar and Sainsbury’s accounts are linked.
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Those who don’t already have a Nectar card can access the Nectar Prices scheme by downloading the app and creating a Nectar account.
It is similar to the Tesco Clubcard scheme, which offers lower prices to cardholders who can also collect points to convert into vouchers or rewards.
Sainsbury’s chief executive Simon Roberts told MailOnline: ‘We are delighted to launch Nectar Prices, which will help millions of our customers save more on every trip to Sainsbury’s.
‘There is much more to look forward to, we will keep refreshing Nectar Prices and increasing the variety of products on offer.
‘It gets better, Nectar customers who shop in store with SmartShop will receive extra personalised value with Your Nectar Prices, bringing them the best prices on their favourite products.
‘Our customers really are at the heart of every decision we make and we hope they find that Nectar Prices is an exciting way to bring them consistently great value all year round.’
Nectar Prices provides Nectar members with exclusive deals when they swipe their card or app in-store, or link it to their Sainsbury’s account online
Mr Roberts also noted that the supermarket has been the slowest in the market to increase product prices. He attributed that feat to a £550million investment in value in the past year.
Changes to the Nectar scheme comes as supermarkets have been accused of using energy costs to pass on even bigger price hikes to cash-strapped shoppers struggling with soaring grocery bills.
Analysts estimate that Tesco made profits of £1.8 billion last year – down from £2.2 billion in 2021 – despite sales that are expected to have risen by about 10 per cent.
This is partly because the grocer, which Britain’s biggest supermarket, is thought to have made less profit on each sale.
The Nectar discounts started today on 300 items initially, spanning household products, pet food and confectionary, and will expand into more categories in the future
Profit margins for retailers across the board have been squeezed by the surge in costs.
Analysts reckon that Tesco will use its clout to restore margins to pre-pandemic levels of more than 4 per cent by raising its shelf prices faster than the costs it faces.
Meanwhile shoppers – also contending with sky-high energy bills – have increasingly tried to save money by turning to cheaper chains such as Aldi and Lidl.
The shake-up comes as new figures showed Britons cut back on groceries and eating out in March, as some nine-tenths of shoppers reported feeling concerned about rising food prices, according to Barclays.
Around 62 per cent said they were finding ways to reduce the cost of their weekly shop, the report showed, which combines hundreds of millions of customer transactions with consumer research.
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