Ahold Delhaize-owned Maine based grocer Hannaford announced on Monday the launch of a new app-based loyalty platform that rewards customers who purchase private brand products. Hannaford has resisted discount-based loyalty programs for years over concern that it would deter their “Every Day Low Price” positioning.
The My Hannaford Rewards program, which launches in 11 stores around Burlington, Vt., provides participants with 2% rewards on all private brand purchases. The loyalty program, which coincides with the release of a Hannaford app,
Hannaford president Mike Vail told Supermarket News in an interview. “We’d been a legacy EDLP, no-games, no-gimmicks, anti-loyalty company for decades, but in 2014 we began to see that the landscape was changing. Until recently we felt like all of the loyalty programs were tied to two-tier pricing, and the way they were constructed would compromise our cost position and our ability to have the lowest prices on the shelf.”
The pilot test is expected to run through the end of the year with tentative plans to launch chain wide early in 2018.