UK Retailers Consolidate Loyalty Cards

Jun 06, 2002

Loyalty Management International plans to launch a loyalty card program this autumn that consolidates those of J Sainsbury, Debenhams, BP and Barclaycard, reports BBC News. Air Miles founder Keith Mills will run the joint card, Nectar, which is expected to reach half of UK households.

The card will be useable at 1,800 stores run by the four companies. Further retailers expected to join the program in the future. Points will be exchanged for “rewards” such as consumer goods, flights, holidays, meals and cinema tickets.

The new loyalty program represents a reversal for UK retailers, who, in recent years, have moved away from loyalty cards due to concerns that they fail to attract new customers.

Moderator Comment: Can a loyalty card program provide a retailer with a sustainable marketing advantage over competitors?

According to the BBC report, Sainsbury said it was going back to a loyalty card because it had lost sales to Tesco with its Air Miles program. [George Anderson – Moderator]

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