Central Co-op is scrapping member pricing for a new cashback rewards initiative, The Grocer can reveal.
It means customers will receive money on products that have a cash reward benefit, which can either be spent on their next shop or saved up over time.
The new proposition will work instead of its member pricing scheme when customers access an immediate discount at point of sale.
Any cashback will be stored in a digital wallet via its newly upgraded membership app, providing “more flexibility and transparency than before”, the society said.
They can also win cash rewards through activities and games on the new app, designed to make “being a member more rewarding and engaging”.
Similar to how its member pricing was showcased in stores, Central Co-op’s electronic shelf displays will show the full price of the product and then what members could earn back through cash rewards.
It has been trialled in five stores since February, with a full rollout across the society kicking off in June.
Central Co-op said the change in membership was shaped by the feedback from over 20,000 members, who said they would prefer instant rewards over discounts.
The announcement comes as the society revealed it has invested over £40m across its food and funeral businesses in the past year.
This has included the launch of five new stores and regenerating 35 others. CEO Debbie Robinson told The Grocer one of the new stores, which has opened in Hambleton, Lancashire, marked its “most environmentally friendly store yet”.
It has been built with recycled materials and solar panels, a herb garden that the customers can take from for free, and more efficient refrigeration, she said.
As part of the investment, Central Co-op has also pumped £1.8m into strengthening security for colleagues and customers, including body-worn cameras and offering free hot drinks to police officers.
Robinson said the society had seen a 12% reduction in assault against colleagues and a 19% reduction in verbal abuse. There had been a rise in armed robbery, however.
Other community investment has included the launch of its partnership with Olio, which reached one million surplus meals being redistributed, feeding over 13,000 local families. It has also installed defibrillators and bleed kits across its store network to provide vital support in emergencies.
“In today’s economic climate, money sitting in the bank is a luxury,” said Robinson. “We’re investing in our society, our colleagues, our stores and our communities because that’s what co-operatives do – we exist to give back, not to generate excessive profit. Despite economic headwinds, we’ve made choices that will strengthen our future and support those who rely on us.”
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