Rewards programs offer a counterbalance to spending cutbacks by incentivizing shoppers with tailored deals to encourage continued expenditure.
GLOAmid ongoing financial uncertainties, American grocery shoppers are adopting a more cautious approach to their purchases, increasingly seeking out digital rewards for added value.
Vivek Sankaran, CEO of Albertsons Companies, emphasized the company’s commitment to its “Customers for Life” strategy, prioritizing robust digital and pharmacy growth, enhancing omnichannel relationships, and refining in-store experiences. This strategy involves leveraging technology investments to seamlessly connect and engage customers across various channels. Albertsons Companies’ fourth quarter and full-year fiscal 2023 financial results showcased a significant increase in digital engagement driving growth, with identical sales seeing a modest 1% increase year over year in Q4, while digital sales surged by 24%. A crucial factor in this growth was the expansion of the chain’s loyalty program, witnessing a 16% increase in membership to nearly 40 million.
Rewards programs serve as a counterbalance to spending cutbacks by incentivizing shoppers with tailored deals to encourage continued expenditure. However, there remains a gap between consumer demand for digital rewards or loyalty programs and their availability. This demand for grocery rewards is expected to intensify as economic pressures persist, as evidenced by consumers’ concerns about near-term economic conditions.
The recent PYMNTS Intelligence study, “2024 Global Digital Shopping Index: U.S. Edition,” conducted in collaboration with Visa Acceptance Solutions and based on polling over 2,400 United States consumers, revealed two key takeaways: 1) 54% of grocery shoppers expect digital rewards or loyalty programs, yet 26% of these consumers are unable to find such programs when they search for them; and 2) Consumers prioritize rewards for their grocery purchases more than for other types of shopping.
Source: GLO
