Safeway UK focuses on loyalty and spend
According to its interim results announcement, UK-based supermarket chain Safeway has made significant investments in keeping its customers loyal. Following that initiative, the company now aims to significantly increase its customers' average spend.
The firm's interim results for the 28 weeks up to October 12th, 2002, show that during the first half of the 2002 trading year, the company's promotional flyer campaign attracted and retained an additional 1.5 million customers.
Incremental investment in the first half of 2002 has been directed toward winning consumer loyalty, and more profitable customer spending, rather than acquiring new customers.
Now, as Safeway implements the second phase of its marketing strategy, it aims to increase average customer spend by continuing the roll-out of new and innovative store formats, accompanied by additional product range improvements.
Growing customer spend A key driver of Safeway's planned customer spend improvement is the roll-out of the chain's new store formats. Customer spend levels in those stores - particularly in the larger formats - are bigger, and growing faster than in the rest of the business.
And, while flyers remain an important tool for attracting customers to its stores, the balance of Safeway's investment between pricing and promotions has begun to focus more on building customer spend. The company has also started to shift its focus toward driving full margin sales.
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