Sainsbury's results show the success of Nectar
In a pre-close period second quarter trading statement, UK supermarket Sainsbury's indicates that its entry into the Nectar coalition loyalty programme is a success, with sales performance having improved in the weeks since its launch.
At the end of the first trading quarter 2002, Sainsbury's reported an impact from its decision to terminate its contract with Air Miles (July 25th, 2002), and anticipated sales growth from its partnership in the Nectar programme (September 12th, 2002).
Since Nectar's public launch on September 16th, 2002, early indications are that the new card has been well received, and Sainsbury's says its sales performance against the market has improved during those first few weeks. During the programme's first week, enough cards were picked up to cater for 40% of UK households.
"We believe Nectar's introduction will have a positive long-term effect on our business. This, together with benefits being achieved through our store reinvigoration programme, leads us to expect a stronger second half," explained group CEO, Peter Davis. He added, "We are continuing to make solid progress on sales in a period of significant internal change, and despite a slower market. We are expecting like-for-like sales growth of around 2.5% for the quarter, and around 2.8% for the half year."