US department store launches rebate loyalty card

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By: Wise Marketer Staff |

Posted on May 13, 2004

US department store launches rebate loyalty card

The US-based department store operator, Fred Meyer Stores, has introduced a new loyalty card which aims to nurture loyalty by rewarding customers for shopping rather than offering loyalty-based discounts in-store.

The new Fred Meyer Rewards Card has now been introduced at Fred Meyer stores in Eastern Washington and Idaho. "Our rewards card is not like any other supermarket card," said Ross Thomas, vice president of sales promotion and marketing. "It doesn't affect prices in any way - you get the same prices whether you use the card or not. There are no gimmicks, no pricing games, and no fees to join."

Rebate for shopping The card pays customers a rebate for using it when they shop at any Fred Meyer outlet or department (excluding Fred Meyer Jewelers). Cardholders earn one point for every full US$5 spent in-store and, when they earn at least 100 points during each specified 13-week period, they qualify for a rebate of 5% of their points total (for example, 100 points brings a rebate of US$5).

Points are totalled and displayed on the customer's checkout receipt every time they use their card, and rebates are mailed to them at the end of each 13-week period.

Launch incentives As an incentive to sign up, new members receive a coupon for 20 bonus points upon their first usage of the card. The company is also running a sweepstake during the first month of the programme in which members can win up to a US$500 shopping spree by using their Rewards Card.

Fred Meyer Stores, based in Portland, Oregon, operates 129 department stores in four western states, offering food, apparel, and general merchandise products. Fred Meyer is a division of US food retailer, The Kroger Co.

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