Loblaw Cos. Ltd. is racing to launch a new rewards card next year, in a bid to catch up to rivals’ loyalty program initiatives – and learn more about its customers.
Vicente Trius, the retailer’s new president, said at an investor conference that the company is working on a new card that it will roll out in 2013, although he didn’t elaborate on the details.
Loblaw’s loyalty-card efforts come just as competition is heating up with the arrival in early 2013 of U.S. discounter Target Corp. and its highly touted rewards program for U.S. customers. Domestic retailers, including Metro Inc. and Canadian Tire Corp., are also beefing up their loyalty offerings. They’re intent on tracking shoppers’ spending habits to help plan their own marketing and product rollouts, while also drawing customers who tend to shell out more when they use a rewards card.
Loblaw already has a PC MasterCard, but only a minority of its current customers are estimated to use it for rewards in their grocery shopping. If the retailer wants to better profit from understanding shopping patterns, the company must take steps to bridge that gap.
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