Sainsbury’s pockets 30m as it withdraws loyalty card

Sainsbury’s will save up to 30m from its marketing budget after its decision to withdraw its Saver Card loyalty scheme from 200 stores.

The chain has ruled out launching a national loyalty scheme similar to Tesco’s Clubcard, and will pull the Saver Card at the end of December. But the card will be re-introduced in some stores next year on a tactical basis.

Launching the Saver Card in 200 of its stores in July cost it 0.3 per cent in margin, which City analysts calculate is equivalent to about 30m. They say the money will be invested in price promotions and advertising.

Sainsbury’s has put development of its Central city centre format on hold, although the three existing stores – in Chelmsford, Epsom, and Exeter – will continue using the Central fascia. The chain will introduce elements of the format into existing town centre stores in Victoria, London and in Cambridge.

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