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jerryking : longo's   3

Whole Foods changes unlikely to spark Canadian grocery price wars
August 29th | The Globe and Mail | by DAVID FRIEND.

The country's biggest grocers are unlikely to play along with deep cuts by Whole Foods' new owner Amazon in the aisles of its 13 locations across Canada. That's partly because the imminent threat of the high-end chain wouldn't justify the financial hit of reacting with deep discounts, suggested Brynn Winegard, a marketing expert at Winegard and Company.

"Places like Loblaws, Sobeys and Longo's won't necessarily be able to afford that," she said.

"But what you will be looking at is a huge market play towards loyalty."

Winegard expects established chains to lean on their reputations – and points-redemption programs – in hopes of keeping customers from straying to competitors in the short term.

Expect better deals on taking home three bottles of spaghetti sauce instead of two, for example, and more appealing bonus point offers designed to get customers back into stores. Both are generally more affordable, and effective, strategies than deep cuts to a wide assortment of products.

Price wars have a long history of offering Canadian grocers little upside, especially if their profit margins are cut to the bone.......Canadian grocers are misdirecting their attention to storefronts, rather than establishing infrastructure that could go head-to-head in the digital world, Amazon's forte.

"Amazon certainly has the capacity, the capability and the website support to do this – the other stores, like Loblaw and Sobeys, aren't really there yet."
supermarkets  grocery  Loblaws  Sobeys  Longo's  Amazon  Whole_Foods  Canadian  price_wars  loyalty_management  oligopolies 
august 2017 by jerryking
THE MAD DASH-
Oct 2006 | Canadian Grocer | David Menzies.
ProQuest  grocery  supermarkets  Longo's  trends 
july 2012 by jerryking
globeadvisor.com: How retailers romance their top customers
June 4, 2012 | G&M | MARINA STRAUSS.
From loyalty programs to 'treasure products,' merchants use new ways to woo their best buyers - and keep them from shopping around.

"retailers are courting their premium customers like never before.

These customers aren't necessarily merchants' wealthiest shoppers, but rather their most valued ones: Those who, for the sake of convenience or product choice, often pay full price rather than wait for a sale. They make up just 30 per cent of consumers, but generate about 50 per cent of retail sales and 70 per cent of gross profit margins, according to new research from rewards-program specialist Aeroplan"
retailers  HBC  Marina_Strauss  customer_loyalty  loyalty  Aeroplan  Longo's  Shoppers  loyalty_management 
june 2012 by jerryking

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