Content about Microeconomics

August 4, 2014

Retailers often have trouble balancing their overall promotions plan with offers and discounts for their loyalty program.

Sandra Gudat, President & CEO, Customer Communications Group

Retailers often have trouble balancing their overall promotions plan with offers and discounts for their loyalty program. In fact, it may be enough of an issue that they keep loyalty as an independent P&L entity, or even steer clear of loyalty altogether to avoid the problem. After all, every retail business is about profit, and adding another layer of promotional discounts into the mix could be seen as a threat to the bottom line.

January 22, 2014

Target Corp. is the latest major retailer to announce it will stop offering health insurance to its part-time employees.

Minneapolis – Target Corp. is the latest major retailer to announce it will stop offering health insurance to its part-time employees. In a company blog post on Jan. 21, Target said it will no longer provide health insurance coverage to part time workers after April 1, 2014.

January 7, 2014

Technology-enabled customer disruption is not strictly the province of retailers. Montreal’s public transportation authority, Société de transport de Montréal (STM), is in the midst of a successful pilot of a loyalty program that uses advanced geolocation and real-time mobile messaging to disrupt the public transportation customer experience.

Technology-enabled customer disruption is not strictly the province of retailers. Montreal’s public transportation authority, Société de transport de Montréal (STM), is in the midst of a successful pilot of a loyalty program that uses advanced geolocation and real-time mobile messaging to disrupt the public transportation customer experience. And in another sign of how traditional silos in the customer experience are falling, retailers are playing an active role. 

January 6, 2014

While it is true that customer loyalty programs have revolutionized the way retailers engage with consumers, initially, loyalty programs were designed only as a data capture mechanism to drive a company’s marketing efforts.

By Punit Kulkarni, Symphony Analytics

October 31, 2013

Toys “R” Us is expanding its point-based Rewards “R” Us loyalty program as it gears up for one of the most competitive holiday seasons in years.

Wayne, N.J. -- Toys “R” Us is expanding its point-based Rewards “R” Us loyalty program as it gears up for one of the most competitive holiday seasons in years. The added incentives include a first-ever, private pre-Black Friday incentive.

October 14, 2013

Most retailers wouldn’t dream of using an abacus to reconcile daily accounts when software exists which performs calculations and reconciliations at lightning speed.

By Jon Abolins, senior tax director at Avalara
 

October 9, 2013

Amid weaker-than-expected August retail sales, leading retailers are kick-starting their holiday shopping season by wooing existing shoppers through their customer loyalty programs. Retailers are increasing their investment in the traditional transaction-based loyalty efforts because of the proven success of rewarding customers for their purchases.

By Michael Zea, president and CEO, U.S., Aimia
 
Amid weaker-than-expected August retail sales, leading retailers are kick-starting their holiday shopping season by wooing existing shoppers through their customer loyalty programs. Retailers are increasing their investment in the traditional transaction-based loyalty efforts because of the proven success of rewarding customers for their purchases.
 

February 14, 2013

The Bon-Ton Stores announced that its “Your Rewards” loyalty program has been revamped and will be reintroduced beginning Feb. 15.

Milwaukee -- The Bon-Ton Stores announced that its “Your Rewards” loyalty program has been revamped and will be reintroduced beginning Feb. 15.

The new program will allow customers to begin earning rewards as soon as he or she $200 on their “Your Rewards” credit card at any of The Bon-Ton Stores seven nameplates, including Bon-Ton, Boston Store, Bergner’s, Carson’s, Elder-Beerman, Herberger’s and Younkers or online.

January 16, 2013

Survey results released by loyalty program consultant Loyalogy showed that restaurant rewards programs can increase patron visits by 35%.

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.

November 27, 2012

Loyalty programs may be commonplace across the retail industry, but few are capable of rewarding members on a personal level. Société de transport de Montréal (STM) may not be a retailer, but retail chains can learn a valuable lesson from how the transportation company rewards individual consumers for their loyalty.

August 8, 2012

By Jundong Song, 89 Degrees

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.

November 30, 2011

Parago, a leading provider of consumer and corporate incentives, announced the launch of a promotional fulfillment service offering designed to reward and communicate to clients’ Spanish-speaking customers in their language of preference.

Lewisville, Texas -- Parago, a leading provider of consumer and corporate incentives, announced the launch of a promotional fulfillment service offering designed to reward and communicate to clients’ Spanish-speaking customers in their language of preference.

November 17, 2011

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.

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.

October 7, 2011

Firethorn Mobile, Inc.! said Friday that outdoor retailer Cabela’s will use the Swagg Smartphone application, providing shoppers with mobile access to special retail offers and customer loyalty programs.

Sidney, Neb. -- Firethorn Mobile, Inc.! said Friday that outdoor retailer Cabela’s will use the Swagg Smartphone application, providing shoppers with mobile access to special retail offers and customer loyalty programs.

The app includes a GPS locater, providing customers with a localized merchant list and detailed description according to their current location. It will also feature user-generated cards, in which users can add their own cards such as AAA, American Red Cross, library, and local merchants.

June 17, 2011

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.

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.
 

May 25, 2011

Brown Shoe Company Inc., which operates Famous Footwear stores, said Wednesday that its first-quarter earnings tumbled, despite rising revenue caused by higher costs.

St. Louis — Brown Shoe Company Inc., which operates Famous Footwear stores, said Wednesday that its first-quarter earnings tumbled, despite rising revenue caused by higher costs.

The company earned $3.7 million, compared with year-ago earnings of $10 million. Excluding special charges for restructuring and other items, the company earned $7 million.

Revenue rose to $624.6 million from $597.7 million a year earlier. Revenue declined at the company's Famous Footwear and specialty retail operations, but wholesale revenue jumped 27%.

April 7, 2011

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.

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.

March 15, 2011

A report released Tuesday by payment system provider ACI Worldwide found that many retail loyalty programs leave consumers feeling underappreciated and many consumers are enrolled in a program they don’t completely understand.

New York City -- A report released Tuesday by payment system provider ACI Worldwide found that many retail loyalty programs leave consumers feeling underappreciated and many consumers are enrolled in a program they don’t completely understand.

March 7, 2011

For the past couple of years, retail survival has largely been about controlling the controllable.

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: 


February 1, 2011

Feeling confident that the worst is behind them, most retailers are ready to expand again as they turn their attention from steadying the ship to actively growing their business. That’s the big takeaway from Retail Horizons: Benchmarks for 2010, Forecasts for 2011 report. The annual study, sponsored by KPMG and the National Retail Federation Foundation, is widely acknowledged as the definitive state of the industry report.

January 11, 2011

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.

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.

November 15, 2010

We are often asked for the “secret sauce” behind a successful loyalty program and whether we can provide a blueprint that can help retailers optimize their approach.

By Dan McKone, d.mckone@lek.com

September 8, 2010

Men's Wearhouse reported late Wednesday that profit for the quarter ended July 31 rose 7%...

May 19, 2010

Children's Place Retail Stores said Thursday that its fiscal first-quarter net income beat rose 19%...

May 5, 2010

Cabela's on Tuesday reported a 57% increase in first-quarter net income, helped by soaring revenue...