Dive Brief:
- Albertsons is updating its loyalty program to streamline how shoppers can accumulate and redeem their savings, according to a company email.
- Starting Monday, the Albertsons for U program will convert to a points-based system only. Shoppers will also be able to earn points for two months instead of just one month, and will have the option of converting points to cash when they check out.
- Albertsons has taken numerous steps to enhance its loyalty program over the past few years and as of early January counted more than 38 million members.
Dive Insight:
As they look to keep price-conscious consumers shopping in their stores, supermarket operators are enhancing their loyalty programs to deliver additional savings to their customers.
The updates to Albertsons for U that take effect Monday are subtle but meaningful. Instead of automatically converting accumulated points into grocery or gas rewards, users will accrue points that they can then redeem for rewards on their own. Loyalty shoppers earn a point for every dollar they spend with the grocer, and rewards include a free item or discounts on groceries or fuel, according to the grocer’s website.
Albertsons for U members will also be able to accrue points for two calendar months before having to spend them — double the amount of time they currently have.
Shoppers who currently have rewards loaded on their accounts will see those rewards converted into points. One reward is good for 100 points.
In addition, Albertsons is adding a new points redemption option, “automatic cash off,” that lets shoppers receive $1 off their orders for every 100 points they accumulate. Shoppers who opt into this service will not be able to redeem their points for grocery rewards but will still be able to earn gas rewards.
Albertsons’ loyalty program has grown steadily over the years and got a major boost from the pandemic. Between Q4 2019 and Q4 2021, the program’s enrollment increased by roughly 45%, to nearly 30 million members. In its most recent earnings report published in early January, Albertsons listed 38.5 million loyalty members.
To grow the program, Albertsons has heavily promoted its loyalty program in stores and offered enhancements like gamification. Albertsons also offers a paid membership program, FreshPass, that offers perks like free delivery.
Numerous other retailers are updating their loyalty programs or launching new ones. In January, Giant Eagle announced that it had updated its myPerks program to boost point accumulation and offer more redemption options. Big Y launched a new rewards program last fall, while The Fresh Market boasted in late 2022 that its loyalty program had reached 1 million members several months after launching.
Sprouts Farmers Market plans to launch its first loyalty program later this year.
