Supermarket chain scrapping member prices in huge loyalty scheme shake-up

A major UK chain is making a huge change to its loyalty scheme with thousands of customers to be affected. Central is scrapping its member pricing and replacing it with a cashback rewards initiative.

The retailer - which is separate from the Co-Op Group but is an independent, community-based co-operative business owned by its members - said the new approach will help offer shoppers more "flexibility and transparency" in earning and using rewards.

Central Co-Op told the that the cashback earned when will be loaded into a digital wallet with a revamped membership app. Shoppers will be informed on how much cashback they could get on a product through the electonic shelves in Central Co-Op stores. This will be displayed alongside the price of the item and labelled as "cashback".

Alongside this, customers can also win cash through activities and games on the new app, which has been intdoxued by the retailer to help make "being a member more rewarding and engaging."

The concept was first trialled in five Central Co-Op stores in February of this year, with the rollout to all stores set for June.

In a statement on the update, a Central Co-Op spokesperson said: "We’re excited to confirm that Central Co-op is launching a brand-new Membership proposition in June 2025, designed to give our Members more flexibility, transparency and real value every time they shop with us. We’ll be releasing further details closer to the time but for any further information, please don’t hesitate to get in touch."

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The shake-up came from feedback from 20,000 customers who said they would prefer instant rewards over discounts. The announcement cam after the retailer made a £ 40 million investment acrossits food and funeral businesses over the last year.

It also comes after the opening of five new Central Co-Op stores and the regeneration of 35 more. The Central Co-Op is one of the largest independent retailers in the UK, with over 400 trading outlets, employing around 7,800 colleagues and more than 330,000 regular trading members according to its website.

One of its recent openings was in Bamleton, Lancashire, which the group's CEO Debbie Robinson described as being the "most environmentally friendly store yet."

This is because it was built using recycled material and solar panels. The space also features an herb garden that customers can take for free and more "efficient refrigeration." The Central Co-Op has also launched a partnership with Olio, which has recently reached one million surplus meals being redistributed to over 13,000 local households.

Robinson added: "In today's economic climate, money sitting in the bank is a luxury. We're investing in our society, our colleagues, our stores and our communities because that's what co-operatives do - we exist to give back, not to generate excessive profit. Despite economic headwinds, we've made choices that will strengthen our future and support those who rely on us."

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