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Sainsbury’s pares back Nectar points allocation

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By Jessica Davies, News Editor

April 12, 2015 | 2 min read

Sainsbury’s has halved the amount of Nectar points you can earn for money spent, a move which has fuelled speculation that frustrated consumers will turn to discount stores such as Aldi and Lidl as a consequence.

The supermarket has reduced its Nectar points allocation this weekend, meaning that from this weekend consumers will receive one point for every £1 spent instead of two. They will also no longer be awarded Nectar points for using their own bags.

Sainsbury’s first revealed its intentions to make the changes to its points scheme last October, a move which has reportedly already irritated shoppers.

It has since introduced other incentives to compensate for the reduced points scheme, including a deal on petrol for Nectar card holders which sees them awarded 10 points per litre of fuel bought at the supermarket’s petrol stations until 10 May.

Meanwhile it will also offer “more targeted, personalised rewards” to its customers from this weekend, it said in a statement.

The supermarket landscape has become more cut-throat with the entrance of discount players Aldi and Lidl, which have stolen a march on the traditional stores.

Last year Sainsbury's spent £150m on a price-cutting strategy to compete with the likes of Aldi and Lidl.

Tesco, despite having been through the ringer this year which has seen multiple senior executives fired after a major profits overstatement error was uncovered.

Its Clubcard loyalty scheme awards one point for every £1 spent on shopping in-store or online, or £2 spent with partners Esso and Eon.

Meanwhile Morrisons introduced its own loyalty card last year.

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