Sainsbury has held high level discussions about whether to drop its Reward Card scheme, we can reveal.
The chain's new marketing director, Sara Weller, admitted it had done a "full and proper review" of its loyalty scheme in the 18 months before she joined.
But she said Sainsbury had decided the scheme was "well worth the money" and was now committed to making it "more powerful and easier to understand".
She said: "We know the people who participate are among our more valuable and more loyal customers."
That was why Safeway was going to alienate some of its biggest spending, least price conscious shoppers with its decision to axe ABC points, claimed Weller. She said Safeway's decision to reinvest the money saved in price cuts worked out at 10p per customer per week compared with the 1% discount offered by the Reward card.
And Sainsbury has stepped up the pressure on Safeway by offering 500 Reward points to anyone handing in an ABC card at its stores.
Safeway tried to offset the negative publicity generated by its decision with the launch of a Win a House' competition this week.
But Weller dismissed the competition as a "headline grabbing gimmick" saying that sort of mechanic did not go down well with consumers.
Tesco also took full advantage of the decision to end ABC points with a series of full page ads in the nationals that took the mickey out of Safeway and urged its shoppers to get a Clubcard.
- When it comes to loyalty, supermarket chain Morrisons has the most "advocates" of any retailer in the country, says a Verdict report.
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