Debenhams stays loyal to Nectar

DEPARTMENT stores group Debenhams today reaffirmed its commitment to the Nectar card loyalty scheme by agreeing to extend its membership.

The High Street group, which was a founder member of Nectar, said it had signed a 'multi-year' extension to the scheme.

Until now customers could earn points at Debenhams but had to redeem them at other Nectar stores. But under the terms of the new contract they will be able to spend the points at Debenhams from late spring.

The news came despite reports late last year that Debenhams was considering withdrawing its membership. It had been suggested that new chief executive Rob Templeman was reserving judgment on the scheme and would examine whether membership of Nectar had boosted sales.

The loyalty card was launched in 2002 by Sainsbury's, BP, Barclaycard and Debenhams. It allows shoppers to accrue points each time they use their Barclaycard, Sainsbury's Bank credit card, BP fuel card or Debenhams store cards.

Other companies that have joined since the launch include telecoms group Vodafone, car maker Ford, sports store all:sports and children's clothing retailer Adams.

Debenhams, which was bought for £1.7bn by private equity group Baroness Retail last year, said that Nectar owner Loyalty Management UK would fund the discount on purchases made using the points.

The group would not confirm the length of the extension, which marks the first time a launch member has signed a renewal.