Metro grocery chain set to launch own loyalty card in Quebec City stores

Metro grocery chain set to launch own loyalty card in Quebec City stores
By Ross Marowits, The Canadian Press

MONTREAL - Metro is launching its own loyalty card program in Quebec City this week - the harbinger of a province-wide program the supermarket chain hopes will give it a leg up in the intensely competitive food business.

Faced with very low inflation, supermarket retailers are constantly looking for new ways to lure consumers into their stores and increase revenue.

"Our objective is to increase the loyalty of our customers, increase the wallet share of their purchases at Metro and hopefully increase our revenue and profitability," Marc Giroux, Metro's vice-president marketing, said in an interview.

The Montreal-based retailer said the Metro&moi (Metro&Me) rewards program will be first available in 26 stores in the provincial capital region starting Thursday. Cards are free.

Unlike the Air Miles program that's used by its Ontario customers, the Quebec program won't require redemptions for accumulated miles.

Instead, customers will get $4 off their bill every three months for every 500 points they accumulate.

One "m" point will be awarded for each dollar spent. Members can also rack up the points by purchasing more than 1,000 promotional products that have special bonus points.

The cards will allow Metro (TSX:MRU.A) to mine consumer shopping patterns and send customized vouchers by mail or email for discounts on the products each card member likes best.

"The idea is not to try to change the consumer behaviour but rather to reward them on the products that they love," Giroux said.

Introduction of Metro's loyalty card comes about five months after it got together with Dunnhumby, a consulting and marketing services agency that has helped supermarket chains in the United States, Britain and France.

Dunnhumby uses sophisticated software to examine every purchase made by customers who swipe a loyalty card.

The information is then dissected. It can be used to guide the chain to alter offerings and product placements to meet the needs of customers in specific stores.

Given the company's track record in helping U.S. giant Kroger and Tesco of Britain to increase their sales, Marc Sischli of Dunnhumby Canada said last fall that the partnership could be game changer for Metro.

Metro has no immediate plans to expand the program outside Quebec. Within the province, Air Miles is exclusively linked with the rival IGA chain.

The Metro program will be rolled out across the province later in 2010, although no dates are being announced for competitive reasons.

After consulting consumers last fall, the new program was designed to be easy to use and to offer rebates.

Giroux called the program an important milestone in the company's history that will help to redefine its relationship with loyal shoppers.

With annual sales exceeding $11 billion, Metro is one of the biggest supermarket chains in Canada, operating nearly 600 stores under the Metro, Metro Plus, GP, Super C and Food Basics banners. It also has more than 250 drugstores.

On the Toronto Stock Exchange, Metro shares closed at $42.16 on Monday, up 37 cents.