Whole Foods Testing Loyalty Program Discount Cards

by William White | November 22, 2013 11:41 am

Whole Foods Testing Loyalty Program Discount Cards

WholeFoods Whole Foods Testing Loyalty Program Discount Cards[1]Whole Foods Market (WFM[2]) is testing a loyalty card program[3] in select stores located in Illinois, Indiana and Florida.

The loyalty cards allow customers to get a 10% discount on the retailer’s 365 Everyday Value items. Whole Foods is hoping that the loyalty card program will persuade customers to purchase more of the stores private-label line, which is where it gets around 11% of its sales from. The company added its 365 brand in 1997 and generally see larger profit margins from the line than what it does from name-brand items, reports Bloomberg.

“If it’s successful, we’ll look at rolling it out into some other markets,” Liz Burkhart, a spokeswoman for Whole Foods, told Bloomberg.

Whole Foods is also testing what it calls a “click-and-collect”[4] system. The system allows customers to order items online, then pick them up at the nearest store.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/05/WholeFoods.jpg
  2. WFM: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFM
  3. testing a loyalty card program: http://www.bloomberg.com/news/2013-11-20/whole-foods-tests-discount-card-as-sales-gains-slow.html
  4. “click-and-collect”: http://investorplace.com/2013/11/whole-foods-gives-online-ordering-go-click-collect-test/#.Uo-GddIjJzU

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