Nectar loyalty card set for global roll-out

Nectar, the largest loyalty scheme in the UK, is gearing up for a major global roll-out by parent company Loyalty Management Group (LMG).

Following the scheme’s success in the UK, where it has over 50 per cent household penetration, LMG wants to launch the brand into markets such as the US, Japan, Germany and Italy. The roll-out is expected to start imminently.

Loyalty Management UK (LMUK) managing director Brian Sinclair, who was recently promoted from client services director, says Nectar is a strong brand but the name could be changed depending on the market and the potential partners.

He says: “Nectar is giving back fantastic value to UK customers and we’re positive it could work in other countries.

“The name depends on the market, but Nectar has been a strong brand and we will seek to find the right partners and establish it if the right opportunities come along.”

Meanwhile, LMG has restructured its UK operations into three divisions. LMUK runs Nectar in the UK, and is overseen by Sinclair. Richard Campbell remains LMUK marketing director.

Loyalty Management Services, headed by managing director Simon Hawkes, aims to get the best value out of Nectar’s database of 13 million households, while Loyalty Management International (LMI), overseen by managing director Alex Moorhead, has already introduced coalition loyalty programmes in six countries.

Sinclair, Hawkes and Moorhead report to chief executive Robert Gierkink.

In October, LMUK was reported to be in talks with investors about a potential sale, with a price tag of &£300m. The company refuses to comment on the progress of what it dubs a “strategic review”. Founder and chairman Sir Keith Mills reportedly stands to make &£100m from any sale.

Nectar was launched in 2002, with founding sponsors Sainsbury’s, BP, Debenhams and Barclaycard.

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