Co-op has revealed plans to cut prices for around 4.5million of its customers who are ‘members’ in a move which rivals Tesco and Sainsbury’s.
The supermarket group, which is a co-operative owner by its member shoppers that runs more than 2,400 food stores, plans to invest more than £240 million into its membership scheme.
It said the funding will be used to introduce new and lower prices which will only be available to Co-op members – which could help them to save up to £300 a year.
Around 4.5 million people are currently members and Co-op said it hopes to grow its membership by a further million over the next five years.
It comes hot on the heels of Sainsbury’s launching Nectar Prices offers that are only available to its Nectar loyalty scheme members, similar to rival Tesco’s Clubcard Prices offer.
Co-op members will initially see particular benefits across food, such as £1.90 savings for ready meals, wine deals to help save £5 and money off Co-op’s British BBQ lines and fresh fruit ranges this summer.
Members will get extra money off its popular freezer filler deal – with an average member saving of £8 per deal.
They will also get discounts of £1.45 on its Irresistible pizzas.
Members will also be able to get Co-op’s lunchtime meal deals for £3.50, rather than £4.
These benefits will be followed in time by investment into other business areas and members will also enjoy exclusive benefits for Co-op Live, the new 23,500 capacity live entertainment venue in Manchester.
Co-op announced the five-year investment plan as it continues with its broader turnaround efforts.
The group is also investing a further £15 million this May to reduce the cost on more than 60 popular product lines for all customers, taking price investment to £52 million for the past six months.
Kenyatte Nelson, chief membership and customer officer at Co-op, said: ‘Our members lie at the heart of our Co-op, they trade more frequently across our business areas, they create additional value, which is returned back into communities and they have a say in how our Co-op operates.
Members pay £5 for Co-op’s Irresistible Pizza 510G while non-members pay £6.45. Members pay £3 for Co-op’s Irresistible Pizza 235G – non-members pay £4.10
‘Our initial member-investment will be targeted within our food business and directly supports our pure convenience strategy.
‘Currently around 16 million shoppers visit our stores each week or trade online with us.
‘Our ambition is that many will convert to being Co-op members, when they see the clear value this can bring to both themselves and their wider communities.’
Kenyatte Nelson, chief membership and customer officer at Co-op
The news comes after Sainsbury’s last week 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 Nectar 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.
