Loblaw opens up PC Insiders to PC Optimum members
Loblaw announced that it has opened its PC Insiders subscription program to 16 million PC Optimum loyalty members.
Originally launched as a small invitation-only offer of exclusive rewards and e-commerce benefits for select members who also were PC Financial Mastercard holders, the program offered rewards on Canada’s top brands and family essentials.
“What started as a small test quickly ballooned, drawing more subscribers than we imagined, and a long waiting list. Today that wait is over, with an open invitation to customers nationwide,” Sarah Davis, president of Loblaw said. “We’ve packaged up the powerful combination of Canada’s favourite products and its most complete e-commerce network for families who want exceptional value and convenience.”
For a $99 annual subscription, PC Insiders members will have access to exclusive value and convenience offers including:
- Free PC Expense e-commerce grocery pickup;
- Free shipping from Shopper’s Drug Mart and Joe Fresh;
- An extra 20% back in PC Optimum points on all brands of baby diapers and formula;
- An extra 20% back in PC Optimum points on all purchases of PC Organics products, PC Black Label collection, Joe Fresh, and luxury beauty items from Shopper’s Drug Mart;
- Surprise home-delivered box of President’s Choice items; and
- A $99 travel credit annually for PC travel service bookings.
“This launch is a big opportunity for our most loyal customers, as the more they use the subscription the more they will save and earn,” Davis said. “PC Optimum loyalty points are already in the wallet of 16 million Canadians, and this is a new opportunity for members who want to take their loyalty benefits to the next level.”
Publix recognized as one of the best workplaces for diversity
Publix announced that it has been recognized by the Great Place to Work Institute and Fortune.
The Lakeland, Fla.-based retailer was named one of 2018’s Best Workplaces for Diversity, coming in at No. 3.
The lost focuses on the experiences of women, people of color, members of the LGBTQ community, those with disabilities and baby boomer or older generations.
In a survey conducted by Great Place to Work, more than four million employees across the United States were asked about the camaraderie within their work environment, company values, company trust and leadership effectiveness.
Kroger’s Q3 reports sales decrease amid store revamps
Kroger’s income fell in the third quarter as it continues to invest in online and offline initiatives to shore up — and transform — its business.
Kroger’s total sales decreased 0.3% to $27.67 billion, just above estimates, amid disruptions as the company continues to revamp stores to allow more shelf space to best-selling products. Excluding fuel, the convenience store business unit divestiture and the merger with Home Chef, total sales increased 1.7% in the quarter over the same period last year. Same-store sales, excluding fuel, rose 1.6%. Digital sales grew over 60%.
Neil Saunders, managing director, GlobalData Retail, commented that, given the unfavorable metrics around online, Kroger needs to counterbalance its digital efforts with growth strategies in other, more profitable parts of the business.
“In our view, online grocery has yet to prove itself as a viable business model,” Saunders explained. “Even in the U.K. – where the market is far more advanced and where the higher population density is more favorable to distribution – online has not been particularly helpful to the bottom line. If anything, it has eroded profits and put margins under severe pressure.” For more analysis, click here.
Net income fell to $317 million, or 39 cents per share, in the quarter ended Nov. 10, from $397 million, or 44 cents per share, in the year-ago period. It reported adjusted earnings of $394 million, or 48 cents per diluted share, when accounting for its investment in online U.K. grocery retailer Ocada Group, above the 44 cents a share analysts had estimated.
Kroger has launched a number of initiatives in recent months, including, most recently, a pilot with Walgreens to sell grocery items in the drug store chain’s stores. In November, it announced that it would open its first customer fulfillment center, with the automated facility leveraging digital and robotic capabilities, will be the first project that it is collaborating on with Ocado.
“Kroger is transforming our business model,” said Kroger chairman and CEO Rodney McMullin. “We’re moving from a traditional grocer to a growth company with both a strong customer ecosystem that offers anything, anytime, anywhere, and asset-light, high-margin alternative partnerships and services. We are strengthening the Kroger ecosystem by reducing costs and investing the savings in our associates, technology, and price to grow units, traffic and share. Leveraging our store, logistics and data assets in turn creates incremental new profit streams, which then further redefines the customer experience. In this way, our new growth model will be a virtuous cycle.
Kroger lowered its net earnings guidance for the year to $3.80 to $3.95 per diluted share from $3.88 to $4.03 previously. It maintained its adjusted operating profits of $2.00 to $2.15 for the year.