The Spar Rewards scheme will enhance the current Multiple Retail Group scheme and will see participating retailers achieve retrospective bonuses of up to £7,000 a year.
The scheme will have three tiers according to store format and size: Red, Green and White. The highest payouts will be offered to retailers on Rewards Red who commit to 700-800 core lines.
James Hall has set aside £1.25m in bonus payments for the first year of the scheme, which is open to all members who sign up to the initiative's agreed criteria.
The scheme was announced at the launch at a series of roadshows being held across the North of England.