Content about Microeconomics

Asheville, N.C. -- Survey results released Wednesday by loyalty program consultant Loyalogy showed that restaurant rewards programs can increase patron visits by 35%.

According to the LoyaltyPulse U.S. study tracking consumer attitudes and behavior regarding restaurant rewards programs, consumers estimate a restaurant rewards programs would increase their visit rate to a particular restaurant by an average of 35%, and another 65% say they would recommend a restaurant more to others if that restaurant offered an appealing rewards program.

By Jundong Song, songj@89degrees.com

In mid-June, Safeway, the number three U.S. food retailer after Wal-Mart and Kroger, capped two years of testing in selected markets and rolled out its enhanced reward program, “Just for U,” chain wide.

It’s a key move in loyalty card programs that all retailers should be watching.

New York City -- PwC US, in its report Experience Radar 2011: Retail Insights, found that retailers that design differentiated ‘experiences’ around their products and services can drive growth, profitability and lasting consumer loyalty, while also maintaining a price premium over competitors.

The study, based on PwC’s Experience Radar methodology, measured the experiences of more than 6,000 U.S. consumers across 11 industries.

New York City -- Kroger Co. reported double-digit jumps in first-quarter revenue and net income, as the chain's fuel stations and loyalty discounts helped draw more frequent shoppers.

Kroger said net income rose to $432.3 million, up nearly 16% from $373.3 million, or 58 cents per share, a year ago. Revenue rose 11% to $27.5 billion. Same-sales rose 4.6%, excluding fuel sales.

Kroger has steadily expanded its gas business, now with more than 1,000 store gas stations at its nearly 2,500 stores.
 

Fort Worth, Texas -- Pier 1 Imports reported Thursday that net income for the quarter ended Feb. 26 surged 65% to $57.1 million, from $34.5 million a year earlier.
 
The home décor retailer cited improving sales, cost control efforts and strong merchandise margins for the substantial improvement.

Pier 1 also announced a three-year growth plan that includes investing $200 million of capital into its operations and starting a $100 million share buyback.

For the past couple of years, retail survival has largely been about controlling the controllable. But in 2011, as spending starts to loosen in the face of a brightening economy, retailers have a lot more to look forward to, according to Natalie Berg, global research director for Planet Retail, London. 


Speaking at the National Retail Federation’s 100th Annual Convention & EXPO, at the session, “Power Players in Focus: How to Be a Retail Winner,” Berg said that to be successful in 2011, retailers need to do the following: 


New York City -- Affinity Solutions, a provider of partner-funded rewards programs, announced that it has signed an extension with Anna’s Linens as a client in its bank rewards program, which connects national and local retailers to a network of over 400 banks. Anna’s Linens will also continue its use of the Affinity Dashboard, a proprietary analytic tool that offers retailers access to in-depth consumer spend data.