John Lewis changes credit card rewards scheme amid rising spending requirements

In the UK, John Lewis announced significant changes to its credit card rewards program, effective from early August. Previously, customers earned a point for every £4 spent using their cards; this will now be altered to one point for each £10 spent. As a result, customers will need to increase their spending in order to receive gift vouchers redeemable at John Lewis and Waitrose, effectively decreasing the value of rewards. For instance, a £100 purchase will yield £1.25 in points under the revised system. While the points earning has been reduced, John Lewis will offer triple points on purchases made in their department stores and online throughout August over the next three years. This dual system aims to maintain the retailer's strong market position alongside its competitors, such as Sainsbury's and Tesco. A John Lewis Money spokesperson stated that the adjustments are made to enhance customer satisfaction and value within their preferred shopping venues. Despite the overall reduction in points earned on purchases made elsewhere, they believe these changes will allow them to focus more on the rewards that resonate most with their customer base, suggesting there remain many advantages to holding a John Lewis credit card. However, this is not the first time John Lewis has altered its card benefits; in 2020, they downsized the points gained from non-John Lewis purchases from one point for every £2 spent to one point for every £4. The alterations have generated mixed reactions among users, especially those who frequently use their credit cards outside of the major retail outlets.