Supermarkets launched their Loyalty Cards with great fanfare, starting with Tesco in 1995, with most of the others following suit soon after. The marketing idea is that customers collect points in exchange for money spent on goods in the store. They can use the points to 'buy' products or receive vouchers to use when paying for their groceries. They are then likely to be more loyal to that store as they can collect more points every time they shop there. They have been very successful and Boots, WHSmith, Homebase, BhS and others, all joined in.
One of the benefits to the shops is the information collected about shopping habits. Boots, for instance, when analysing purchases by their cardholders found that there was a link between baby goods and photographic products. They now put camera films next to the nappies. The Editor has always wondered why Safeway has not targeted him with tempting offers of cat food in order to retain his (or perhaps his cat's) loyalty.
As time went on customers ceased to be persuaded by the rewards points to
confine shopping to one particular store or company and many collected several
loyalty cards and shopped at the most convenient store. It is not particularly
surprising that the excitement has worn off because many have realised that the
actual reward is minimal. Which? Magazine says that the average annual household
spend on groceries is £2,900. The standard supermarket reward is 1% so that
spend would give the shopper a return of £29 for a year's loyalty If that is
spread between several supermarket chains the shopper gets the same reward but
the benefit to the supermarkets is reduced.
Now comes the news, in a letter to cardholders, that Safeway, after trying to tempt shoppers with double and triple points on special offers, is to discontinue its ABC card, promising to put the money saved into price reductions in the hope that this will attract new customers. There are no signs yet that the other operators will discontinue.
An interesting development by Boots will see their Advantage Card transmogrified in September into a Loyalty Credit Card. This will operate like a normal VISA card but with the advantage that the shopper will gain one point for every £1 spent using the card, increasing to five points earned when using it to buy goods at Boots. It will still take a long time to amass enough points ( 4,500), to enjoy a day at a leisure club.
Shoppers, its all your fault, you are just not loyal enough! However, if you wish to transfer your loyalty from Safeway to Sainsbury, you will be credited with 500 points if you exchange your old ABC card for a Sainsbury one. What happens, however, if you have been disloyal and already hold a Sainsbury one?
Safeway's Chief Executive is quoted in The Guardian of May 11th, from which most of the information here was obtained, as saying of customers "they'll never get tired of great deals." One great deal that the Editor never gets tired of is offered on a Wednesday by B & Q, the do-it-yourself store. It gives a 10% discount to holders of its Diamond Club card, but to get one you have to be old enough to receive state pension. It is really quite odd to be there on a Wednesday and see the grey tide sweep in, bent on serious purchases.
John Brown - source - information article in "The Guardian" on May 11th.
The Department of the Environment, Transport and the Regions commissioned the Royal Agricultural College [RAC] to carry out a study to examine farm assurance schemes and the incorporation of environmental conditions.
The College's research included looking at existing regulation and other
quality control schemes and consulting with all those with an interest in
farming and the countryside. Members of NfCG joined focus group discussions on
such things as milk, meat, poultry, cereals and organic foods.
A report of the study has been produced with proposals for the development of five environmental modules for producers to use to cover regulations.
Each module - soil and water management, whole farm nutrient, farm waste, pesticide/ medicine/chemical, and biodiversity and countryside - identifies the plans, procedures and records a producer needs to demonstrate compliance with current legislation.
To develop the use of these modules to help producers consider environmental concerns in their own particular area, the RAC report suggests that guidance from the organisation Linking Environment and Farming [LEAF] would be valuable.
The RAC hope that the report will persuade the Government to work with the farming industry and community in food production and caring for the countryside.
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