Hannaford Expanding Loyalty Program Chainwide

Rewards tied to private-brand purchases; will also include personalized offers

Calling it a “reinvention of grocery store loyalty programs” built around store-brand purchases and personalized offers, Hannaford Supermarkets is launching its My Hannaford Rewards program chainwide this week.

The Scarborough, Maine-based retailer, a division of Ahold Delhaize, began testing the program in October at a group of 11 stores around Burlington, Vt., and has expanded it to all 181 of its stores in the Northeast. The program represents a departure for Hannaford, which for years resisted operating a loyalty program because officials felt doing so would interfere with its everyday low price marketing strategy.

The new program offers participating shoppers a 2% reward on every store brand product and leaves prices untouched. Around 5,200 fresh and center store items qualify for such awards in a typical Hannaford store. Shoppers will also receive personalized coupon offers for the national- and regional-brand products they buy.

“My Hannaford Rewards is a new way to thank customers, with a 2% reward on private-brand items and coupon offers that are meaningful to them as individuals," Hannaford President Michael Vail said in a statement. “The things that people love about Hannaford – including great fresh food, low everyday prices and excellent service – are our foundation.  My Hannaford Rewards builds on that to provide customers with additional benefits for the shopping they do each week.”

The program is different from traditional supermarket loyalty programs because in-store prices remain the same for all customers whether they enroll in the program or not, officials said. By contrast, club models or two-tiered loyalty programs require customers to subscribe to access a better level of store pricing.

The rewards apply to all Hannaford, Taste of Inspirations, Nature's Place, Home 360, Cha-Ching, Etos, Companion, CareOne and Healthy Accents products. Officials said the program, designed to generate more frequent and higher-volume trips shopping trips and take advantage of momentum behind private-labels items, exceeded expectations of participation during the Burlington test period.



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