Co-op Group ending Member Rewards

Stuart_W

Co-op Group are ending their 2p in the £ member rewards from 24th January.

You will have until December to spend accrued rewards on your shop so plenty of time.

The blue membership card or app can still be used to get member prices and use app-only member offers.

Technically members could choose to vote to reinstate a declared dividend which hasn't been paid for years, and the card would determine the allocation for this dividend. However, I think the last co-op group dividend payment to members was around 2013 so this is quite unlikely.

The Co-op Group membership card  (but not app)  can for the time being still continue to be used in Central, Midcounties and Chelmsford Star Co-ops where you will earn divi but not get their societies' member prices. It will also take longer to receive the divi and the society you have shopped in will payout to Coop Group who will then forward to you on their next 6 monthly distribution date, usually  May and November. It's all a mess really, from a scheme originally designed as a reciprocal dividend scheme. Completely separate schemes like East of England or Lincolnshire Co-op are much easier to understand - they are completely separate and unrelated.

Cashmygiro

Member prices heh. Biggest scam of the decade with the likes of Tesco, Asda, Sainsburys and Iceland doing it.

Stuart_W

Cashmygiro said:

Member prices heh. Biggest scam of the decade with the likes of Tesco, Asda, Sainsburys and Iceland doing it.

Yes it is, the Competition and Markets Authority are supposed to be launching an investigation this month into loyalty card prices. 

Co-op Group's decision to scrap Member Rewards in favour of member prices may be short lived if member prices are curtailed by the findings of the review.

Largs

Ive got the members credit card and get points to spend in their supermarkets.  I wonder if this will end too.

Stuart_W

Largs said:

Ive got the members credit card and get points to spend in their supermarkets.  I wonder if this will end too.

So have I. I get a six-monthly statement from Co-op group, like you do, which contains the members credit card cashback. This always used to be the dividend statement, with divi on it from all Co-op group spend and from other societies but as Co-op Group haven't paid a dividend since 2013 all I get on it is the credit card cashback. It survived this long without Co-op Group owning the bank so I think it will stay until new owners decide what to do with it.

If Coventry Building Society do end up buying The Co-op Bank they will be keen to keep mutual credentials high profile so will probably reinvent the members' credit card in some shape or form but the link to the Co-op Group will eventually end. 

alicef

I cannot find what will happen to the member points support to local charities.  I signed up to be a member originally because I wanted points donated to a particular local charity - collectively these points made a significant contribution.  Anyone know what will happen to the charity bit?

NQManchester

alicef said:

I cannot find what will happen to the member points support to local charities.  I signed up to be a member originally because I wanted points donated to a particular local charity - collectively these points made a significant contribution.  Anyone know what will happen to the charity bit?

I’m a current local cause and they’ve said there will be £4m shared from jan to Oct by existing causes and the amount we receive is determined by how many members choose us 

Stuart_W

Here's the full text if the letter I received in the post:

[QUOTE]

We're making some changes to Co-op Membership

Dear Stuart_W,

As a member of our Co-op, we are focused on the things you care about. Our members have overwhelmingly told us that managing household costs is a top priority and so we've listened and now we're responding. By making changes to our membership benefits, we're giving you more immediate value back.

From 24 January, you'll no longer earn rewards for purchasing Co-op products and services. Instead, as a valued member, you'll always save more with exclusive Member Prices across Food, Insurance, Funeralcare and Legal Services, giving you savings on the things you need.

And, within our food business, there's even more to come throughout 2024. Including savings on your Co-op food everyday essentials, as well as the brands. you love, week in, week out.^

Something that won't change is our commitment to supporting local communities. We'll continue to do this through our Community Partnership Fund, and a dedicated £4m in funding to support existing Local Community Fund causes. If you've already chosen a cause, they'll get a share of the fund. If you haven't chosen yet, you can still choose which cause you'd like to support online and in the Co-op App.

What does this mean for you?

From 24 January 2024, you'll no longer earn 2p for every £1 spent on Co-op products and services. To check how much is currently in your membership rewards balance at any time, please visit account.coop.co.uk or open the wallet tab in your Co-op App. You can still spend or donate any rewards you've earnt until 31 December 2024."

Yours sincerely,

Kenyatta Nelson

[/QUOTE]

So from that I understand that local causes will still be supported, but from a defined fund rather than directly from spend.

Katiehound

I didn't realise that there was still a dividend!
 Never been asked in store  if I wanted to spend it.
Created online account & there it shows divi for some years- but had to be spent in that year. Fortunately not much, but still I would have spent it or donated it to charity. ....gave them my existing 57 pence!

Lincolnshire Coop shows your dividend on the bottom of the till receipt & staff usually ask if you want to spend it. It's more generous there anyway, especially with the bonus dividend awarded in December. (Rarely shop at either to be honest!)

alicef

Thank you @NQManchester & @Stuart_W for the info.  I'm on my OH card but I'll get my own membership if funds, going forward are based on member numbers chosing the charity.

Newcad

"Our members have overwhelmingly told us that managing household costs is a top priority and so we've listened and now we're responding."

- by cutting your membership rewards (again).

I can sort of see why they are changing the 'cash to spend on your card' scheme, I know people who never use it and so accumulate hundreds to spend on their cards.

But it should have been replaced with something more tangible than a promise of 'member prices', not just cut altogether.
(I have an idea - How about totalling up what members spend and sending them a cheque or vouchers each year - Oh wait ....).

They do seem to be trying to become just another retail chain rather than a co-operative society.
I wonder if a future step will be an offer (or a resolution by 'the board') to buy your coop share(s) off you; so you are no longer members?
I for one will want quite a bit more than £1 if that should ever happen.