Sainsbury’s is to extend its Your Nectar Prices personalised loyalty scheme across its e-commerce site during the next year, as CEO Simon Roberts looks to double down on value.
The scheme, which provides Nectar members with tailored offers based on their purchase history, is currently only available to customers using the Sainsbury’s SmartShop scanners in store.
“We’ll take Your Nectar Prices into the online channel this year,” Roberts said during a press conference following the publication of Sainsbury’s full-year results this week. “This is all about how we get a more personalised relationship with customers and give customers better value.
“There’s lots of big basket shopping online, so to be able to give you unique prices based on what you order in your online shopping – we think that’s going to be a big deal,” Roberts added.
Sainsbury’s first introduced Your Nectar Prices in 2021.
Roberts said the supermarket had initially focused on developing a personalised offering following its 2018 acquisition of Nectar, as this was more complex to develop and integrate into its systems than a universal price offering.
In April, Sainsbury’s launched Nectar Prices, offering members discounts on around 450 select branded products in its supermarkets and online.
As well as enabling the business to provide customers with value and products that are unique to them, increasing participation in Nectar would enable the business to make better use of customer data, Roberts suggested, highlighting that the group expects insights from its Nectar 360 business to deliver more than £90m to Sainsbury’s profit margin by 2026.
The grocer’s results revealed group sales rose by 5.3% to £35.2bn, driven by inflation, while underlying profit before tax fell 5% to £690m in the 52 weeks to 4 March 2023.
Roberts promised further investment in value over the next year, as the retailer looks to keep prices low in a bid to stop shoppers switching to the discounters during the cost of living crisis.
Sainsbury’s has invested heavily in its price lock and Aldi price match campaign as part of a wider £560m investment over the last two years, which had helped it to improve the “perception of value” among customers, he said.
Roberts hinted the retailer would extend its range of “entry price points” during the coming months. Nectar Prices would also be “spread out across a wider part of the store” over the next year, he added.
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