UK Store Chain to Review Nectar Membership

30 December 2003

British department store chain Debenhams is reviewing its membership of multi-sponsor loyalty card scheme Nectar.

Despite being a founder member of Nectar -- alongside BP, J Sainsbury and Barclaycard -- the retailer plans to reassess its participation after coming under new management.

Earlier this month, Rob Templeman became chief executive following Debenhams' sale to a consortium led by venture capitalists Texas Pacific Group and CVC Capital Partners. Templeman is leading an overhaul of the group's marketing strategy and says he has not yet decided whether to continue with Nectar.

More than 13 million British households have so far signed up to the year-old scheme, which is run by Loyalty Management UK. However, some observers have suggested that converting cardholders' information into more targeted marketing remains difficult.

It has emerged that Laragrove, the consortium that lost out in the Debenhams auction, also planned to review the group's Nectar membership. "We couldn't see what value it really brought," said one insider.

Data sourced from: Financial Times; additional content by WARC staff