Debenhams to leave Nectar in February
Loyalty Management Group (LMG), the owner and operator of the UK-based Nectar coalition loyalty scheme, has announced that the department store, Debenhams, has decided not to renew its contract with Nectar when it expires on 15th February 2008. Debenhams was one of Nectar's four founding partners.
The expiry of the Debenhams contract will not affect Nectar collectors' ability to collect or redeem Nectar points at other retail outlets outside Debenhams, and points earned through Debenhams in the past are not affected. However, Nectar points will not be issued or redeemed at Debenhams after 15th February 2008.
For LMG, although it has lost a founding partner, this presents an opportunity to bring in a new department store partner and could help to create a new 'wave of excitement' among programme members.
New loyalty scheme? According to LMG, Nectar will now seek to develop opportunities for its collectors to earn Nectar points with clothing and department stores both online and in the UK High Street.
Indeed, it has been reported by industry analysts that Debenhams has also been working on producing its own loyalty programme with a store card that awards loyalty points, and MasterCard credit and debit card offerings that will also offer Debenhams loyalty points for all card spending.