Albertson's decides to eliminate preferred savings cards within its

Just think of it as one less gadget on your key chain. Taking a bold leap as part of a new marketing campaign, Albertson's has decided to eliminate preferred savings cards within its Rocky Mountain Division.

Chris Wilcox, a spokeswoman for the grocer, said management feels the decision will differentiate its stores from its competition.

"Our decision-making is closer to our customers now than in the past," Wilcox said. "We are trying a unique approach of talking to our customers. Neighborhood marketing for each store helps us to provide better shopping experience for each customer."

Wilcox said that by listening more closely to what customers want, the company feels it can respond more quickly and effectively without using a card.

According to the Food Marketing Institute, loyalty-marketing programs have existed since S&H Green Stamps rewarded grocery store and gas station customers with stamps that were redeemable for merchandise beginning in the 1950s.

Because of advancing technology, loyalty cards allow retailers to gather data and tailor products to regular shoppers.

About 50 percent of food retailers offer loyalty programs, according to FMI's 2006 The Food Retailing Industry Speaks report.

And more than nine in 10 shoppers (92 percent) use the cards at least once a month, according to FMI's 2006 U.S. Grocery Shopper Trends.

But the power of the cards perhaps was lost when shoppers began carrying cards for every retailer.

There was no reason to consolidate your business and show loyalty to only one store, said Bill Bishop, chairman of Willard Bishop LLC and a consultant for FMI.

He said that the cards originally were used for one of two things: learning more about customers and their needs and to reward shoppers.

Times are changing, though, and it seems that while some retailers are gaining insight from the cards, others aren't reaping any benefits.

"Everybody isn't going in the same direction," Bishop said. "Well- regarded companies are sticking with it and others say it doesn't make sense with our strategy."

Some retailers are using the data to draw attention to items that they know are popular, he said. Others are using branded coupons available via their Web sites and e-mail, or through a kiosk in the store, which allows consumers to scan their cards and receive a specialized set of promotions.

But any type of promotion requires an investment and discipline, and if the retailer isn't careful, it can be just an added cost.

So, how will customers respond if a card they carry with them everywhere is taken away?

The possible answers to that question were enough to convince Albertson's to ditch the card program in conjunction with a new marketing campaign.

Signage will be placed in each store featuring the slogan, "With no card, saving money is a great deal easier."

"The signage in the store will still indicate the regular price and the great deal price," Wilcox said. And each customer's receipt will still list the savings and tabulate the savings at the bottom.

The new "No Card, No Hassle" shopping experience is in effect at the 32 Albertson's stores in Colorado, along with the eight Albertson's stores in Casper, Cody, Laramie, Sheridan, Cheyenne, and Gillette, Wyo; and one store each in Scottsbluff, Neb.; and Rapid City, S.D.

Each store has tables manned by an associate where customers can return their preferred savings card and receive a coupon for one free item.

Although the benefits of the cards are debated among retailer grocers, another industry has decided to join the bandwagon.

"The grocery stores, the drug stores and electronics had all tried it," said Kris Smith, regional marketing manager for Arby's. "But nobody in fast food had."

The program is not exactly the same, but it is does add another card to consumers' key chains.

The Arby's card is considered a portable coupon that you don't have to worry about expiring. It is available in Indiana, Kentucky, Tennessee, Michigan and Minnesota.

"With a large family like I have, I'm in my car 95 percent of a regular day and my keys are the one thing I always have," Smith said.

The discount card is ideal for customers who always forget coupons. It has helped drive traffic counts, and the sales have been phenomenal, she said.

"We will look to do another round of cards either just for our region or expand to companywide," Smith said. "That is the hope that is what they are investigating, whether it is something we should be doing on a national level, corporatewide."

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