UK retailer Sainsbury’s has extended its contract for loyalty card programme Nectar.

The group said today (22 February) that it has signed a new long-term contract with Nectar owner Aimia. The retailer did not disclose the term of the deal. The two sides have worked together since 2002 when Sainsbury’s launched its Nectar programme.

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The UK’s third-largest grocer currently has around 11.5m active Nectar users. Through the scheme, the retailer is able to collect data, from which it offers customers relevant rewards and promotions. Sainsbury’s believe this can be “a more effective use of the advertising budget”.

“We’re delighted to reaffirm our commitment to the UK’s largest and most popular loyalty programme,” said Sainsbury’s chief executive Justin King. “Nectar has played an important role in our continued success. Our unrivalled insight into shopper behaviour means we can help customers by giving them offers and promotions on the items they buy every day, while the scheme provides numerous ways to collect and redeem.”

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