In a striking fit of poor forward thinking in 2013, Albertson's and it's sister banners dropped their loyalty membership programs. The easily swayed media over at
Slate pounced on this announcement. The author clearly hates loyalty programs and offers a diatribe for why loyalty programs are "a bad business strategy", and are only used to "monitor and exploit your habits". He even goes so far as to suggest that you should take your business elsewhere if you are offered a card or keytag in one of these programs.
If that's so, then why is it participation in loyalty membership programs is up
26.7%? Because people like free stuff. And discounts. And all the other things that come with membership. And why would Brian Palmer so vehemently criticize loyalty programs and stores that use them? The most logical answer after reading his screed is that he is far-right wing conspiracy nut obsessed with hiding is private information from the gub'ment. And Big Business.
And finally, what was Albertson's thinking when they decided to do away with their own loyalty card program that had been running successfully for many years? Essentially it was something similar to what we tend to see on Wall Street. Albertson's was bought out and the new owners wanted to save some money on a loyalty program that had immediate costs, but immediate benefits were not so obvious. This will likely inflate the bottom line for a while, long enough for them to sell again and make a handsome profit. Only then will it become clear the error of their ways.
As other grocery stores expand on their loyalty infrastructure and gain more information about thier shoppers, their advantage will continue to grow. After all, they'll be able to tailor their offerings precisely to their customers' desires. Can any store do that without information?