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.

By Kumar Venkataraman

Over the last decade, America’s Atlantic shores have faced the wrath of more than a dozen hurricanes, causing damage worth several billion dollars. Year after year, retailers have been learning and fine-tuning their strategies to respond to the critical needs of consumers in the impacted areas, both in preparing for a disaster and immediately after.

The National Retail Federation is predicting holiday retail sales to rise almost 3% to $465.6 billion, which represents far slower growth than last year’s 5.2% gain. Based on a shaky economy and high unemployment, many retailers are taking a wait-and-see approach to stocking their shelves this year, which has resulted in a later “peak” season than normal. For many businesses, this phenomenon will result in a rush to get goods on shelves if demand picks up at the last minute, driving the need for more air cargo shipments. 


When it comes to logistics efficiency, Pep Boys, a leading automotive aftermarket service and retail chain, is committed to staying ahead of the curve by managing cost, mitigating risk and driving best-in-class operations.


Transportation budgets are taking a hit this year as diesel fuel costs continue to climb, topping $3.57 per gallon last month, roughly $0.74 higher than a year ago. For a retail fleet that travels 11.5 million miles a year, that adds almost $8.51 million in fuel costs over the 2010 spend. 


However Hannaford Supermarkets, based in Scarborough, Maine, has taken proactive measures in recent years that have increased efficiencies across its fleet of 100 tractors, helping to mitigate the pain of rising fuel costs.