- Category: Food Prices
- Last Updated on Wednesday, 27 March 2013 11:57
- Written by Seraphim
On October 24 California supermarket chain Vons announced that members of the loyalty programs VonsClub and ValuePlus Pavillion will now be able to redeem club card rewards points at select Chevron and Texaco gas stations (saving up to 20 cents a gallon). Grocery shoppers will receive one point for every dollar they spend with each 10c/gallon savings costing 100 points (or 20c/gallon costing 200 points). Safeway shoppers should get excited too ! According to Mike Volund who is a general manager at Chevron, the majority of Safeway customers are already members of the loyalty program even though the rewards are earned at Vons.
Also to be aware of : 1) gift card purchases get you twice (2X) as many reward points ($1 = 2 points) -- 2) no points are earned on purchases of alcoholic beverages, cigarettes and lottery tickets
Vons has been a subsidiary of Safeway since April 1997. The program was initially tested in San Diego on October 8, 2012 and has since expanded to 1000 other stores. 1990's was when Safeway began offering customers loyalty rewards.
Cary Knuth says Chevron "wanted to offer customers the opportunity to reap the benefits and product offerings of both Safeway and Chevron".
more on Safeway: Earlier this year (2012) Safeway began its exit from the Philadelphia market by selling 16 of its 27 Genuardi's Family Markets to Ahold's Giant/Carlisle for $106 million (in 2001 Safeway had acquired 39 Genuardi's for $530 million after closing four underperforming locations in 2010).
investment advice: Growth in margins/returns at Safeway hasn't been all that great. Traditional supermarkets are gradually eroding market share to larger wholesaler/hypermarket retailers (Kroger Marketplace, Costco, Wal-Mart, Target) as well, economic growth across many states remains an issue and that's causing many shoppers to tighten spending opting instead for value items (not unlike the UK where the discount market leads with +9% annual growth).