Asda's new loyalty scheme to benefit local traders
The UK supermarket chain Asda, famed for its EDLP (every day low pricing) strategy, has announced details of an initiative to pilot a loyalty programme at its new store in Huntly, Aberdeenshire, to benefit not only shoppers but also small shops in the town.
ASDA's small 23,000sq.ft store in Huntly will open on 15th May 2006, and is expected to draw new shoppers to the town from surrounding areas. But, in an effort to preserve trade for the smaller, independent merchants in the town of Huntly, the supermarket is to trial a loyalty programme called COLLECT & SAV£.
Asda unveiled its plan at a meeting of business leaders in the town last week, and is currently finalising the details of the scheme after listening to their feedback. Local retailers are also currently being invited to join the programme. Asda says that the programme has been well received by local business leaders in Huntly. According to Aberdeenshire Town Partnership coordinator, Donald Boyd, "There's been nervousness in our small town ever since it was clear we'd have two supermarkets open within weeks of each other. Our job is to keep the town centre vital and active and this scheme fits very well with that."
How it works The idea of the programme is that Collect & Save stickers will be displayed in participating local retailers' windows (to identify them as participating merchants). Local shoppers can pick up a Collect & Save wallet from participating retailers, or from the new Huntly Asda store.
Whenever shoppers make a purchase from any participating retailer, or from Asda Huntly, their receipt will be stamped. Shoppers simply keep their stamped receipts in the Collect & Save wallet until they have enough to redeem for a reward.
The spend requirement for the programme is £25 in a local retailer and £25 in Asda, within a four week period. Shoppers can then present their wallet and stamped receipts at the Asda customer services desk and claim at free £5 voucher toward Asda's George apparel brand.
Each month, shoppers will redeem their qualifying receipts for vouchers, and pick up the next month's Collect & Save wallet at the same time.
Community efforts The announcement of this programme comes after a speech made by Wal-Mart president and CEO, Lee Scott, in which he promised that Wal-Mart would do more to support small businesses around its US stores, and demonstrate a renewed commitment to being a community partner. According to Asda's head of community involvement, Richard Woodhall, "We take the contribution we can make to the community very seriously, through fund-raising, charitable giving and practical support."
Asda also plans a number of other community initiatives to complement the scheme, such as showcasing local produce, working in conjunction with the Huntly Town Partnership to offer practical support to the town's retailers, and supporting local organisations and charities. Additionally, 120 new jobs were created by the new store.