Co-op plots £240m investment in membership scheme

co-op-rebrand 2Co-op is planning to invest more than £240m over the next five years to boost its loyalty programme and help customers save more, with the first initiative following both Tesco and Sainsbury’s in offering exclusive prices for members.

The expansion of the scheme follows plans – revealed earlier this month – to boost membership by a million over the next five years. The scheme currently has 4.5 million active members.

As part of this major £240m investment, Co-op is introducing new and lower prices only be available to Co-op members which could help them to save up to £300 a year.

The move replicates Tesco Clubcard Prices, first launched in September 2019, which offers shoppers discounts on hundreds of products in supermarkets and online at the checkout. Morrisons set up a similar scheme in October last year, while Sainsbury’s followed suit last week with the launch of Nectar Prices.

Co-op members will benefit from extra money off its freezer filler deal and further discounts on pizzas, ready meals, wine, BBQ lines and fresh fruit ranges.

The programme will be backed by a new multichannel marketing campaign, running in Co-op’s 2,400 stores and across its owned digital channels, under the strapline “Members Save More”. A wider campaign – including TV – will launch in May.

Co-op chief membership and customer officer Kenyatte Nelson, who was appointed in January, 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.

“For us to champion a better way of doing business, we are aiming to grow our membership base by one million over the next five years and will accompany this ambition with a compelling member-benefits programme, which will span our entire Co-op.

“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.”

The new member-food benefits will be followed by offers from Co-op’s other business areas in funeral care, insurance and legal services.

The organisation will also offer members exclusive benefits to Co-op Live, a new 23,500-capacity entertainment arena in Manchester.

Members will get access to pre-sale tickets before general release, hospitality experiences, the chance to win free tickets, backstage VIP experiences and fast-track entry-access to the arena.

Nelson concluded: “In making this commitment to our members, we are investing directly into our Co-op future.”

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