Dive Brief:
- Albertsons grew its loyalty program 16% in Q4 2023, reaching 39.8 million members, the company said in an earnings report released Monday for the period which ended Feb. 24.
- CEO Vivek Sankaran attributed Albertson’s growth to its “customers for life” strategy, which emphasizes deeper relationships with customers no matter where they shop.
- Albertsons’ ultimate goal for the strategy is to support its shoppers every day and every week for their lives, according to Sankaran. He noted that the initiative is a multiyear strategy, and the grocer will continue investing in experiences throughout 2024.
Dive Insight:
Albertsons began the overhaul of its loyalty program in August 2021 and, most recently, the grocer simplified how shoppers earn and redeem reward points.
The continuous evolution of Albertsons’ loyalty app is paying off. Albertsons was one of the top-ranked grocers in a January Ipsos survey in which more than 3 in 5 shoppers said they were extremely likely to use its delivery option again — the highest among any grocer.
The ease of navigating Albertsons’ app was a major contributor to its success, according to Silvana Daehn, VP at Ipsos’ channel performance practice.
Albertsons’ potential new owner, Kroger, is upgrading its customer experience as well. The grocer is building relationships with loyalty members by offering personalized deals based on their most commonly purchased products.
However, the FTC is concerned that a combined Kroger and Albertsons could lead to less competition and reduce the quality of grocery services in areas served by the companies, ultimately weighing down the customer experience.
Competition between the two companies is driving “a broader array of in-store services, flexible store and pharmacy hours, and curbside pickup services,” the FTC wrote in February when announcing a challenge to the merger. The agency believes the “incentive to improve product quality and customer service will decrease” following a merger.
