A major UK supermarket chain is making a huge change to its loyalty scheme with thousands of customers to be affected. Central Co-Op is scrapping its member pricing and replacing it with a cashback rewards initiative.

The retailer - which is separate from the Co-Op Group but is an independent, community-based co-operative business owned by its members - said the new approach will help offer shoppers more "flexibility and transparency" in earning and using rewards.

Central Co-Op told the Grocer Magazine that the cashback earned when shopping will be loaded into a digital wallet with a revamped membership app. Shoppers will be informed on how much cashback they could get on a product through the electonic shelves in Central Co-Op stores. This will be displayed alongside the price of the item and labelled as "cashback".

Alongside this, customers can also win cash through activities and games on the new app, which has been intdoxued by the retailer to help make "being a member more rewarding and engaging."

The concept was first trialled in five Central Co-Op stores in February of this year, with the rollout to all stores set for June.