It is offering discounts on hundreds of products to Nectar members when they swipe their card or app in-store, or link it to their Sainsbury's account online.

It is similar to the Tesco Clubcard scheme, which offers lower prices to cardholders who can also collect points to convert into vouchers or rewards.

The Sainsbury's shake-up means shoppers will benefit from lower prices on selected items, such as Nescafe Gold Blend instant coffee costing £4 for cardholders rather than £8.10, Heinz baked beans available for 95p instead of £1.40, and Tanqueray gin £19 instead of £27.50.

However, the offers will not be available in Sainsbury's locals, concessions or petrol stations.

Sainsbury's bought Nectar, which has about 18 million members, in 2018.

Members will still earn Nectar points on products they buy - which can then be spent on other brands such as Argos, Caffe Nero or British Airways.

"Nectar prices is a new pricing proposition that offers digital Nectar customers all-year-round access to a unique set of discounts on products handpicked for them," the supermarket giant said.

"Items will be clearly marked with a Nectar price label visible on the shelf edge in-store or next to each product online."

The move comes as Tesco is cutting the value of its Clubcard rewards scheme, with customers no longer able to get triple their value when they cash them in with scheme partners. Now the points will only be worth double.

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The consumer prices index (CPI) measure of inflation took a surprise leap in February to 10.4%, up from 10.1% in January, and driven by a rising cost of food and alcoholic drinks in pubs and restaurants.

New data and research in a report from Barclays shows Britons cut back on groceries and eating out in March as the cost of living crisis gathered steam.

Around 62% said they were finding ways to reduce the cost of their weekly shop.