Wed Feb 27, 2013, 07:06 PM
Sherman A1 (13,335 posts)
Just for U Could End Print Ads: Safeway
PLEASANTON, Calif. — Safeway here said Thursday the success of its Just for U digital program may enable it to discontinue print ads in the U.S. by the end of the year.
In a conference call with analysts to discuss financial results for the year and fourth quarter that ended Dec. 29, Steve Burd, chairman and chief executive officer, also said the chain’s health and wellness initiative, whose launch was scheduled for last year’s fourth quarter, should be ready to go by mid-year. Responding to a question about whether Safeway would consider selling its Canadian operation, he said the chain will do “the sensible thing.”
Asked when the Just for U program might allow the chain to pull back on promotional spending, Burd said, “We could get there probably late in 2013 — and as people become more digital, we see it as an opportunity get out of newspaper ads and personalize the ads for every household,” he said.
According to Burd, Safeway has registered 5.4 million U.S. households in its Just for U program, or 45% of its sales base — a number that could reach 55% by year’s end and ultimately reach a maximum level of 65%, he noted. Just for U is scheduled to be introduced in Safeway’s Canadian division by mid-year, he added.
Read More: http://supermarketnews.com/retail-amp-financial/just-u-could-end-print-ads-safeway#ixzz2M9DJtpXG
10 replies, 786 views
Just for U Could End Print Ads: Safeway (Original post)
|Sherman A1||Feb 2013||OP|
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|Stinky The Clown||Feb 2013||#3|
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|Gormy Cuss||Feb 2013||#5|
|Sherman A1||Feb 2013||#6|
|Gormy Cuss||Mar 2013||#8|
Response to SoCalNative (Reply #1)
Thu Feb 28, 2013, 03:59 AM
Sherman A1 (13,335 posts)
Time will tell if this is to become a trend or if there is sufficient backlash by consumers. It will most certainly have an affect on those that are not among the "wired" in the community.
Response to Sherman A1 (Reply #4)
Sat Mar 2, 2013, 07:15 PM
justabob (2,966 posts)
10. also loss of impulse sales
One story I read talked about how self checkouts don't have all that stuff.... lighters, razors, batteries, candy, magazines.... around the checkout area handy to throw into your basket at the last minute, so they lost a significant bit of revenue that way too.
Response to Sherman A1 (Reply #6)
Sat Mar 2, 2013, 05:01 PM
Gormy Cuss (28,714 posts)
8. Safeway already offers different discounts based on club card data.
The sad truth of it is, most of the "member sales" offered with affinity card programs are no better than the general sales offered at other, similar retailers with out card programs. IOW, people are giving up privacy for bupkis.
Response to Sherman A1 (Original post)
Sat Mar 2, 2013, 07:04 PM
jmowreader (28,149 posts)
9. Just for U could end Safeway
There are a few problems with this...
problem 1: not everyone has a smartphone. Not everyone WILL have a smartphone.
problem 2: not everyone who has a smartphone will subscribe to Just for U. Look at Burd's numbers: they expect no more than 65 percent of their "sales base" - the people who have Safeway Club cards? - to subscribe. By getting rid of print advertising they blow off a hell of a lot of people, and all those people have alternatives. In Safeway's sales area there are plenty of supermarkets, and most of them sell for less than Safeway does.
problem 3: Just for U is geared to the person who walks into the store for twenty items and leaves with exactly those twenty items. Print ads encourage "hey, I need that too" shopping.
I can definitely see them cutting down on their print advertising; we're certainly not seeing as much Safeway preprint as we once did. ('Course, there are only two Safeway stores in Coeur d'Alene.) But getting rid of it? Not a good idea.