Fresh & Easy will roll out loyalty cards to customers at its 28 Phoenix-area neighborhood markets next week after a successful test in Bakersfield, Calif.
In Bakersfield, the company doubled its customer mailing list soon after the program was launched, and executives quickly decided to roll out the cards at all of its stores.
Unlike traditional grocery loyalty cards that trigger special prices, the Fresh & Easy card accumulates points, based on dollars spent, that can be converted into a store credit.
But like other companies that have loyalty programs, Fresh & Easy will be able to use the cards to monitor customer purchases and send them coupons for products they are known to use.
The loyalty cards are one of a number of programs Fresh & Easy has recently launched to steer the operation toward profitability.
The company has been adding higher-margin private-label products to its mix and installing in-store bakeries at many locations. It has expanded its wine selection at many stores and eliminated stationary sampling stations in favor of smaller rolling carts. It also is enclosing coolers to lower energy costs.
Since entering the U.S. in 2007, British retailer Tesco plc has opened 182 Fresh & Easy Neighborhood Markets mostly in metro Phoenix, Las Vegas and Southern California.