Threshers gives up Nectar membership

by James Quilter, Marketing 19-Apr-06

Threshers has ended its three-year relationship with the Nectar loyalty scheme.

Roger Whiteside, Threshers' chief executive, said the decision followed
a strategic review of the business, but sources close to the group
claimed the returns had failed to justify the cost of retaining

membership.

Whiteside added that the group, which also owns The Local and Wine Rack
chains, wants to focus more on in-store experience, including
emphasising its range and discount deals such as three for the price of
two.

A Nectar spokeswoman confirmed that Threshers was leaving the scheme; it
would not say whether it would seek to replace it with another
off-licence chain.

Threshers is one of Nectar's longest-standing members, having joined
shortly after its launch in 2002. Only Sainsbury's, Debenhams and BP,
all of which were founder members, have been with the scheme longer.

The most recent brand to leave Nectar was Vodafone, which ended its
two-year tie-up with the scheme to focus its reward strategy on offering
customers cheaper calls (Marketing, 13 July 2005).

At the time, industry insiders speculated that the operator did not feel
its status as a points collection partner offered it enough value.

Nectar recently revamped its marketing strategy for the first time since
launch. Earlier this month it created an ad campaign featuring a series
of characters called The Nectars. The decision followed customer
research indicating that its campaigns needed more warmth and humour.

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