UK shoppers are collectively missing out on a staggering £3 billion in potential savings each year due to unspent loyalty points, according to a fresh industry report. The study from data analytics firm Antavo highlights a significant financial oversight, with more than a quarter of all loyalty points accumulated annually going completely unused.
Major Retail Schemes Under Scrutiny
The research specifically focuses on Britain's largest loyalty programmes, including the Tesco Clubcard and Sainsbury's Nectar schemes. These initiatives, alongside offerings from competitors like Morrisons and the Co-op, reward customers with points for their regular shopping when they sign up to the respective programmes.
However, a critical issue identified is widespread consumer unawareness regarding expiry policies. Many participants do not realise that these valuable points have a finite validity period, after which they become void and are effectively reclaimed by the retailers.
Tesco Clubcard's Voucher Conversion Process
Tesco has clarified its operational procedure for point conversion. The supermarket giant states: "Two weeks prior to issuing your Clubcard statement in February, May, August, and November, we exchange your accumulated Clubcard points into vouchers. These vouchers can then be accessed via the Clubcard section within the Tesco app or your online Clubcard account."
The company adds that for customers who have opted to receive paper statements, these vouchers will arrive within three weeks from the designated cut-off point. Any points collected after this stage will roll over and be converted for the subsequent statement period.
Tesco defines the intervals between these quarterly cut-off dates as the 'collection period,' which typically spans roughly three months. While customers can continue to collect points after a cut-off date, these will appear on their next statement. For those seeking earlier access, vouchers can be requested in advance through the Tesco app or online platform.
How Sainsbury's Nectar Points Accumulate
The Nectar scheme, operated by Sainsbury's, encourages shoppers to collect points on most purchases, allowing rewards to build up over time. Customers can save enough points to redeem for various treats and products.
Points can be collected and spent both online—by linking Nectar and Sainsbury's accounts—and in physical stores by scanning or swiping a Nectar card. Standard points from general shopping transactions are usually credited to the account immediately, whereas bonus points or those from special offers may take up to 28 days to be added.
This report serves as a crucial reminder for millions of UK households to actively manage their loyalty scheme memberships to avoid forfeiting hard-earned rewards and maximise their household budgets.
