Netto becomes first German discount grocer to run loyalty scheme

The discounter is already known for offering well-known brands at low prices, in contrast with rivals Aldi and Lidl and their own-label strategies.

Netto, which is not related to the Danish chain of the same name, is expected to use customer data gathered by the card to adapt stores and range to local markets, rather than for targeted promotions. 

Supermarket group and Netto parent company Edeka has worked with the Deutschland-Card scheme since 2008 through its eponymous supermarket chain.

Users of the scheme collect points with every purchase from its partners, such as petrol station chain Esso, which can then be used to pay for purchases or saved to obtain special deals on holidays and entertainment.

Discount supermarkets both in Germany and internationally have avoided loyalty schemes to date as they are not considered necessary alongside everyday low pricing and no-frills strategies.

Rewe Group, the German-based retail and leisure group, is a notable exception as it offers a loyalty scheme outside Germany through its discount chain Penny, which operates in six European countries including Austria and Italy.