Co-op makes huge change at 2,400 stores to match Tesco and Sainsbury’s with ‘member price’ cuts to offer customers cheaper food
The Co-op has unveiled plans to cut prices for around 4.5 million of its customers who are ‘members’ in a move that rivals Tesco and Sainsbury’s.
The supermarket group, which owns a co-operative of its member customers and operates more than 2,400 food stores, plans to invest more than £240 million in its membership programme.
It said the funding will be used to introduce new and lower prices that will only be available to Co-op members – which could help them save up to £300 a year.
About 4.5 million people are currently members, and Co-op said it hopes to grow membership by another million over the next five years.
It comes on the heels of Sainsbury’s launch of Nectar Prices offers only available to Nectar loyalty program members, similar to the competing Tesco’s Clubcard Prices offer.
Co-op members will initially see food specific benefits such as saving £1.90 on ready meals, wine offers to save £5 and discount on UK BBQ lines and fresh fruit range of Co-op this summer.
Members get extra cash from the popular freezer filler deal – with an average saving of £8 per deal.
They also get a £1.45 discount on the Irresistible pizzas.
Members can also get Co-op’s lunchtime meal deals for £3.50 instead of £4.
These benefits will be followed over time by investments in other business areas and members will also enjoy exclusive benefits to Co-op Live, the new 23,500 capacity live entertainment venue in Manchester.
Co-op announced the five-year investment plan as it continues its broader turnaround efforts.
The group will invest a further £15 million in May to reduce the cost of more than 60 popular product lines for all customers, bringing the price investment for the past six months to £52 million.
Kenyatte Nelson, chief membership and customer officer at Co-op, said: “Our members are the core of our Co-op, they trade more frequently in our areas of business, they create added value, which is returned to the communities and they have a say about how our cooperative works.
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 focused on our food business and directly supports our pure convenience strategy.
“Currently, approximately 16 million shoppers visit our stores each week or trade with us online.
“Our ambition is that many will convert to join the Co-op when they see the clear value it can bring both to themselves and to their wider communities.”
Kenyatte Nelson, Principal Membership and Client Officer at Co-op
The news comes after Sainsbury’s took over Tesco’s Clubcard last week by making major changes to its Nectar loyalty card, expanding it to include discounts on 300 products.
The supermarket has introduced “Nectar Pricing” on products in major stores and online for members of its scheme as it seeks to match competitors’ advantages.
New deals for those using Nectar include Heinz Baked Beans at a third discount, which will now cost shoppers 95p instead of £1.40.
And the price of a 200g jar of Nescafe Gold Blend is slashed by more than half for Nectar holders, from £8.10 to £4.
The changes bring the Nectar scheme closer to that of Tesco, which launched its Clubcard in 1995 before adding the ‘Clubcard pricing’ element in May 2019 which offers lower prices on in-store products for those who have the card or app.