Targeting customers and loyalty schemes

During the 1930s, the provision of a home delivery service meant that lists of regular customers and their shopping patterns were available. If any customers were neglecting to purchase certain products, they were targeted with details of special promotions and free samples.

Trading Stamps had originated in America in the nineteenth century, and were adopted in Britain by some retailers from 1961. Sainsbury's opposed trading stamps on the grounds that administration costs would push food prices up in the long term. A massive anti-trading stamp advertising campaign was launched, featuring slogans such as "Honest-to-goodness value at Sainsbury's - no stamps, no stunts".

In a 1966 speech entitled "Advertising - A Retailer's View" Lord Alan Sainsbury stated his belief that "one's image should be reflected in one's advertising and one's packaging" and that he liked to think that the JS image was "one of straightforward trading with a clear enunciation on the value we offer". He argued that "stunts, stamps, coupons, toy submarines, winkie-blinkie dolls or Batman kits can only cloud the image".

Thirty years later, in June 1996, Sainsbury's launched its first loyalty card scheme. The Reward Card enabled customers to collect points for their purchases, which could then be exchanged for money off their shopping and a variety of other 'rewards'. When the scheme was relaunched in October 1999 there were 14 million Reward Card holders. The scheme was replaced by the Nectar card, which can be used across a range of companies, in September 2002.