Now we didn’t see that one coming.
At the end of this year Homebase, one of Nectar’s key partners, is ending their 7 years long partnership. There is this saying about the seven-year itch…
In January the Australian DIY chain Bunnings bought Homebase for £340 million and will spend another £250 million on rebranding all Homebase stores under the name Bunnings. This will include the introduction of their Australian brands to the UK market and a promise to invest in lower prices rather than continuing Homebase’s patnership with Nectar
The changes have not been mentioned on the Homebase website yet. However, in order to prepare customers for the changes, notices have been displayed in store reading:
‘After a careful review Homebase will leave the Nectar programme at the end of the year. This means customers will no longer be able to collect or spend points in store after December 31 2016. Our priority now is offering customers everyday low prices across a wider range of home and garden improvement products.’
Will this affect Nectar in general?
I believe so. We’ve already seen changes to Nectar with Sainsbury’s decision last April to halve the number of points awarded which made the card less attractive.
Nectar’s approach of targeted rather than general offers and a generally more complicated and less rewarding system than, for example, Tesco’s Clubcard are the reason for many customers not taking Nectar points seriously (although we do our best here at Shopper Points!).
There seems to be an overall change in supermarket loyalty cards on the horizon. Tesco has already slashed their Clubcard Boost events and is currently reviewing Clubcard, analysing how to make the card and the supermarket more appealing.
Customers don’t want to invest time to understand and figure out loyalty schemes. Savings need to be obvious and loyalty cards have to be worth the points. The Marks & Spencer Sparks scheme is a prime example of how to do it badly as we wrote a couple of months ago.
For Nectar, this is another blow and it desperately needs a major new partner if it is to continue to be taken seriously.Want to earn more Clubcard or Nectar points? Click here to visit the Shopper Points home page for the latest news and offers. Come back every day for new deals or join our email list.
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