Boots cuts Advantage Card points earned per pound

Boots is changing the way its loyalty card works by offering discounts on more of its own-brand products but cutting the points earned per pound.

The health and beauty retailer said that from May, holders of the Advantage Card would collect 3p worth of points for every £1 spent, instead of 4p.

The move comes when many retailers' costs are increasing amidst record rises in energy bills and overheads.

One retail analyst said shoppers "want their jam today rather than waiting".

"Loyalty schemes where shoppers collect points to use later are losing appeal as shoppers want the best price and discount right now, and the cost of running these schemes is also significant," said Catherine Shuttleworth.

After the changes, every point people earn will continue to be worth 1p to spend in Boots.

Boots added that customers would be able to save 10% in store on 6,000 of its own-brand products.

It said customers would also save on hundreds of products with its Price Advantage scheme in a move which was to "make things stretch that little bit further". Price Advantage allows Boots card holders exclusive access to lower prices on certain products.

It said the move was in response to customer feedback.

On its website, Boots said: "We understand that more customers are looking to access instant savings, so offering 10% off our Boots own brand range will give even more opportunities to save.

"We understand that many customers still love saving up their points for big purchases in the future, so will continue to offer 3p worth of points for every £1 spent at Boots."

The retailer said students would continue to receive a 10% discount storewide, alongside the extra 10% for Boots branded products.

Recent research suggests that shoppers have been switching away from branded products at certain retailers and opting for own-brand equivalents to save money at the till, as inflation - the rate at which prices rise - reaches record highs.

Ms Shuttleworth said Boots is competing with other High Street firms to hold on to shoppers amid rising cost pressures, and that points "really aren't enough" anymore.

"Boots is faced with shoppers that are looking for better prices and great value and are shopping far and wide to find it from discount retailers like B&M and Home Bargains to supermarkets and online," she told the BBC.

"Younger shoppers in particular are well versed in unlocking immediate discounts offered to them."

She said that with the cost-of-living crisis, shoppers are increasingly savvy about making their money stretch as far as possible.

"Changes to schemes and devaluation of points can mean that shoppers choose to give up collecting their points and simply shop elsewhere," she said.

Annich McIntosh, managing editor of Loyalty Magazine, said Boots had been the "last bastion of high-value loyalty points".

"It always had been one of the more generous schemes since the start of the loyalty push," she said.

The shift to instant discounts was common across retailers, she said, allowing companies to continue to collect extremely valuable data about spending habits, while keeping their own costs down.

They could also use the power of differential pricing to push their own-brand products, and have branded products supplied cheaper, to enhance profits.