Co-op’s newly reinvigorated membership scheme will see it give shoppers £15 million.
The Belfast Telegraph has reported that the grocer will be pumping significant sums of money into its membership programme, which it has recently reintroduced in an effort to turn around its financial woes.
Members of the grocer, which holds the fifth largest amount of market share in the UK, will receive five per cent reward on every own brand item they purchase, with a further one per cent going to charity.
For a shopper that spends £40 a week at Co-op, this equates to around £100 a year reward, and about £20 to charity.
The reintroduction of the scheme aims to return the brand to its heyday before a banking scandal in 2013 and a £2.3 billion deficit.
Members of the scheme, which are now estimated to be around five million, own part of the company. In the past this saw the Co-op achieve great success and it is aiming to gain another million.
Since it scrapped its original dividend scheme during its recent demise, new rival loyalty schemes like Amazon Prime have emerged on the market, and will provide a significant hurdle in gaining new members.
According to Kantar Worldpanel, the Co-op has managed to prevent its market share from fluctuating. Since 2013 its share has grown by 0.2 per cent, whereas all of the Big 4 have seen market share drop.