Co-op launches new shopping reward scheme

Instead of a dividend this Christmas, members of the Co-operative will be given 10% discount vouchers.

Christmas discount vouchers are to be handed out to the Co-operative Group's seven million members to redeem against their shopping from 18th November.

The reward scheme replaces the annual pre-Christmas dividend which has been abandoned this year due to the fragile financial situation of the group’s banking arm.

Shoppers reward scheme

Members of the Co-op will have to spend at least £5 between 18th November and 15th December to get the 10% rebate voucher.

If a shopping basket is worth £20, for example, the customer will be given a £2 voucher to use which will be printed on their receipt. These vouchers will be valid until December 24th at the Co-op’s food shops.

The new reward scheme replaces the £8 million dividend members are normally paid which the group says could not be justified in the current situation.

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Funding gap

Last week a rescue plan was announced for the Co-op Bank which would leave it with a 30% stake. The rest of the bank will be managed by bond investors such as US hedge funds.

There is a £1.5 billion gap in the bank’s finances which was largely caused by the purchase of the Britannia Building Society in 2009.

It was also announced that 50 of the Co-op's 324 branches would be shut.

Read Ethical alternatives to the Co-operative Bank.

Loyalty schemes

There are a number of discount schemes on offer from supermarkets, such as Nectar points with your Sainsbury’s shop and Clubcard points at Tesco. They are also in fierce competition to secure Christmas shoppers so it’s worth finding the best deal before you part with your money.

All of the leading supermarkets are running price promise schemes. These work by paying the customer the difference of a comparable shop at a rival supermarket. But each works in a slightly different way.

The Sainsbury’s Brand Match, for example, pays out a coupon for the difference up to the value of £10 on branded products. At Tesco the Price Promise includes own label goods where an equivalent is sold at a rival supermarket.

Asda also has a Price Guarantee. For this the basket of food goods needs to have at least eight items and one should be comparable to an item at one of the competitors.

Compare the top supermarket reward credit cards

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The top loyalty schemes for shoppers

Ethical alternatives to the Co-operative Bank

How to save money on your food shopping

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