Fred Meyer Stores launches loyalty rebate card

WM Circle Logo

By: Wise Marketer Staff |

Posted on February 16, 2005

Fred Meyer Stores launches loyalty rebate card

The US-based department store operator Fred Meyer Stores has announced the launch of its new 'Fred Meyer Rewards Card', designed primarily to build and reward customer loyalty by (in a break with US tradition) issuing points rather than discounts for frequent shopping.

The card has initially been introduced in Oregon and Western Washington stores, making the Rewards Card available in all Fred Meyer markets. And, according to officials from Fred Meyer, the card will be perceived by consumers as being very different from cards offered by other retailers, because it is points-based instead of being tied to price.

"The card is not like any other supermarket card," commented Natalie Ream, group vice president of sales promotion and marketing. "It doesn't affect prices in any way, so you still get the same prices whether you use it or not."

How it works Instead, the Rewards Card pays card holders a rebate for using the card when they do their shopping. Programme members earn one point for each full US$5 spent at Fred Meyer stores and then, when 100 points are earned during any of the preset 13-week periods throughout the year, they qualifies for a rebate.

Customers who use the card can also accumulate extra points by making purchases from any other Fred Meyer department (except Fred Meyer Jewellers). As an incentive to sign up, new members receive 20 points the first time they use their Rewards Card.

Points are tallied and displayed on the customer's till receipt every time they use the card for a purchase. Rebates are mailed to programme members at the end of each 13-week period.

Fred Meyer Stores is based in Portland, Oregon, and operates 129 multi-department stores in four western states, each offering a range of food, apparel, and general merchandise products. Fred Meyer is a division of food retail giant The Kroger Co.

More Info: