Dive Brief:
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Southeastern Grocers, the owner of BI-LO, Harveys Supermarkets, Fresco y Más, and Winn-Dixie stores, announced it is transitioning to a new SE Grocers fuel rewards loyalty program in partnership with Shell. The program will begin this summer and will allow shoppers to redeem points on gas at participating Shell or other select fuel stations and on groceries.
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Southeastern Grocers has previously used the Plenti multi-merchant points program. However, American Express Co. this month said it will end the three-year-old program on July 10 due to shifting priorities and changing competitive conditions. The company decided that investing in loyalty programs made more sense in international markets where it already operates.
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Anthony Hucker, president and CEO of Southeastern Grocers, said in a release that the company had "listened loudly to our customers about all of the things they value with our current rewards program" and how to improve the next one. "We will take every step to ensure this transition is clear, smooth and creates quality value and savings for our customers and associates where it matters most — food for their families and fuel for their vehicles," he said.
Dive Insight:
Given the financial importance of fuel and food rewards programs to grocery retailers, it was crucial for Southeastern Grocers to get another program in place quickly — particularly since the Florida-based retail chain is currently going through a Chapter 11 bankruptcy reorganization and needs to cement customer loyalty now more than ever.
Fuel rewards programs have proven very popular among consumers. Membership in such programs has grown by 10% in the past two years, according to a recent study, which is more than any other type of loyalty or reward program. Also, a significant number of consumers (20%) say they will go out of their way to patronize stores offering the chance to earn fuel rewards, the study found.
The break-up of the Plenti rewards program, meanwhile, marks a significant development in retail loyalty services. The program launched three years ago and was modeled after similar European programs that offer savings across a variety of different outlets. However, American Express struggled to add companies to its roster — Southeastern was its only grocery chain — and ultimately felt it needed to draw the curtains on Plenti.
Southeastern Grocers no doubt hopes that partnering with a worldwide brand such as Shell will encourage more shoppers to fuel up and then spend their rewards points at one of the chain's four banners.
And since closing stores, remodeling remaining ones, and customizing them to their community and clientele is the name of the game for the chain right now, the retailer will likely have a sizable number of new customers to go along with its new rewards program. Although its future outlook remains uncertain, Southeastern is undergoing significant changes that will be interesting to monitor over the coming months and years.