Nectar starting to turn sour
Some of the major sponsors of the biggest loyalty cards program in the UK, Nectar, are starting to have doubts about it.
Both Sainsbury's and Barclaycard - founding members of the Nectar scheme are unhappy with how it is driving sales. The Chief Executive of Sainsbury's, Justin King, has ordered a review into the scheme with the option to leave it should it be found to be particularly unprofitable. Out of a marketing budget of £40 million, Nectar dvertising is thought to take up around £20 million. Understandably, Mr King is wary that this proportion is high and it is one of the areas that he is looking to save a "significant amount" on over the next three years. Barclaycard has led the way in slashing the amount of money it spends on advertising the scheme, and has even gone so far as to not offer it to many new customers. Financial News Feeds provided by OneCompare.com
Date published: 10/25/2004 8:43:01 AM
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