Brown & Cole grocery stores has ceased its rewards card program amid consumer feedback that customers no longer want to carry so many loyalty cards.
The Bellingham, WA-based company, which operates 27 stores in Northwest and Central Washington, said it didn’t want to burden consumers with a loyalty card program in an already oversaturated market. Over the last three to four months, Brown & Cole stores conducted informal surveys and found that customers were tired of carrying a plethora of loyalty cards.
“Customers said, ‘We have cards from everywhere. We just want a simple way to save money,”‘ said Sue Cole, the company’s public affairs director. “So, it made sense for us to drop the program. People were delighted.”
In its place, the company rolled out a new program called Over 1,000 Things on Sale. The program, which doesn’t require a card, discounts at least 1,000 items in Brown & Cole stores and changes each week.
“With card programs, there are so many,” Cole said. “There’s nothing unique [about them]. For us, a small regional chain, it makes complete sense to do this. Possibly, it will be a differentiator.”
Brown & Cole runs stores under the trade names Cost Cutter, Food Pavilion, Food Depot, Thrifty Foods Marketplace, $ave-On-Food$ and Everson Red Apple.
While the small grocery chain has bowed out of the loyalty card service, other retailers are forging ahead. Experts say the popularity of loyalty card programs is still surging, and retailers will need to do more one-on-one targeting before consumers start to see loyalty programs fade out.
“Loyalty programs are incredibly popular now,” said Scott B. Krugman, spokesman for the Retail Advertisers and Marketing Association. “Retailers like it because it allows them to better understand their customers and their shopping habits. We are definitely going to see retailers continue…these programs.”
“Is there an over saturation (of loyalty card programs)?” Krugman asked. “Probably. But we are oversaturated with stores. Each retailer will make a decision that is best suited for them [regarding loyalty programs].”
If retailers hear that customers don’t want loyalty cards, then they may decide to end the program. But in the overall retail space, “I don’t know if we are hearing that message just yet,” Krugman said.
The Brown & Cole Rewards program, which launched in 2004, concluded at the end of January. Under it, consumers earned discounts on store products and points for using their loyalty card. Points, which were affiliated with S&H greenpoints, could be used toward savings certificates and merchandise in S&H catalogs, or donated to local schools in the Rewards for Schools program. Consumers have until Feb. 19 to redeem points in the program.
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