Supermarket chains like Walmart, Costco, and Kroger suffered losses during the Covid period. Few and fewer people were willing to spend more than they had, much less venture outside. The business was the most hit, and sales were at the lowest. Some companies even had to declare themselves bankrupt, and the inflation due to uncertainty in the market was at an all-time high. In such a financially straining situation, many of the stores had to cut short on their customer-friendly services, including offering cashback.
Officials at Sainsbury announced their decision to roll the cashback service in most stores. Kent Live reported an official of the Sainsbury speaking on condition of anonymity their decision to withdraw cashback service. The service was removed at their stores in significant locations on a trial basis. However, in exchange, customers would be offered free cash points on every purchase to make up for the sudden withdrawal. Sainsbury argued that when Covid was at its peak, shoppers preferred to go contactless. Most of the transactions from Sainsbury were processed through credit cards and no formal contact. This propelled the company to scar its popular cashback service, which has left customers fuming.
What is the response from the customers?
The majority of the customers are disappointed with the recent decision from Sainsbury. Around 80% of those left frustrated with the current move are repeat customers. A customer on the condition of anonymity expressed her views to the Daily Mail newspaper. She disagreed with Sainsbury’s view that cashback was declining and stated it was the safest option during Covid. With inflation touching a peak, there is a higher risk with cards than cashback services. Cashback also takes seconds to process money, thus being quick and efficient.
What is Cashback?
Cashback is usually offered with credit cards. Its process is similar to that of the barter system but regarding customer purchase and money spent. For example- there is a cashback offer of 1.5 cents on credit card X. A customer can acquire 1.5 cents on every purchase and every spent dollar using credit card x. These cashback rewards will be stored on your credit card. It is entirely up to the customer when they want to redeem it. Different cards have different cashback processes for redeeming them. Some cards have cash back redemption through Amazon and others through mail or gift.
Why do Supermarkets have cashback?
Most supermarkets offer cashback for their profit and to reduce their workload. For every transaction processed through a credit or a debit card, the banks charge a nominal fee from the company for large cash amounts. Hence, when a supermarket offers its customers cashback, it avoids that nominal fee that it owes to the bank. Moreover, cashback service is itself very appealing to the customer. By offering some amount of cash to the customer, the supermarket itself is reducing its rivals and making regular customers.
How many Supermarket chains currently have Cash Back systems?
| Name | Availability of Cash Back | Statement |
| Walmart | Yes | Customers can receive cashback up to 10-15 $ and use it a maximum of three times a day |
| Kroger | Yes | Cashback amount differs on debit, credit cards. A customer can receive a maximum of 4$ on every transaction |
| Costco Wholesale | Yes | Cashback is given at the end of the year to the customer either on cards or through mail |
| Albertsons | Yes | The maximum amount of cashback received can be 100$-300$ depending on the location |
| Meijer | Yes | A cashback of 100$ can be received on a debit card |
| Publix Super Markets | Yes | Cashback ranges between 100-200$ |
| Target | Yes | Cashback of 40$ in most locations |
Is Sainsbury’s New App replacing its Cash Back service?
In 2018, Sainsbury announced its decision to launch a new app that will help its customers purchase orders in the supermarket. The customers now need not go to the store itself for their shopping. They can easily choose their comfort of home and order all their groceries and other items through this app. Some in the market speculated this app to replace the now-dead cashback service of Sainsbury’s, but Sainsbury refused to comment. The app has all the products ranging from household groceries to drinks and eatables. The customers have to enter their card details, and they can purchase all their items wherever they are.
Conclusion
Sainsbury is one of the leading Supermarket chains in both the USA and UK. Its competitors include giants like Walmart and Target. However, market experts say that its decision to roll back on the cashback might affect its customer acquisition. Some experts have even stated that this decision might compel its most regular customers to shift to Amazon, Target, and Walmart. It is too early to comment on the situation as nearly every supermarket chain in the USA was hit with Covid, and only time will tell whether Sainsbury will pass the test of time or not.
FREQUENTLY ASKED QUESTION
Q.1 Does Sainsbury accept cashback?
No. Sainsbury does not accept cashback.
Q.2 Does cashback in Sainsbury depend on its locations?
No. All locations of Sainsbury do not offer cashback to its customers.
sanisbary cashback
