The Co-op is set to scrap its 2p for every £1 spent rewards scheme in favour of a “significantly increased” number of member-only prices and deals across the business.
Retail Week understands that from January 24, instead of customers receiving rewards from purchases made at The Co-op on branded food purchases, members will instead “benefit from price reductions on branded as well as own-brand foods for the first time,” and receive two personalised offers every week.
A spokeswoman for the c-store specialist said its analysis showed that “member pricing is financially more rewarding [to the customer] than the rewards available via the previous mechanism.”
The new offers being made available to Co-op food customers will also be available to insurance, funeralcare and legal services customers.
Shoppers with existing rewards pots will have until December 31, 2024 to either spend their rewards with The Co-op or chose to donate them to local causes.
The Co-op insists the changes to the rewards scheme “won’t change our commitment to supporting local communities.” The retailer said it would continue to do that through its £4m dedicated Community Partnership Fund.
Co-op Group chief executive Shirine Khoury-Haq has made revamping the brand’s membership scheme a central tenet of her strategy for reviving the ailing business. She also outlined plans to grow The Co-op’s active membership to over 5 million in the next five years.
In April 2023, the brand unveiled plans to invest more than £240m in its membership model in a bid to slash prices for customers struggling with the cost-of-living crisis.
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