Business & Tech
Jewel-Osco Eliminating Loyalty Card, Fuel Rewards
The Chicago-area grocer says it wants everyone to enjoy the savings card-free. It's a move some say is in the opposite direction of the trend.
Jewel Osco is doing away with its Preferred Savings Card after two decades of card-based savings, company representatives announced.
The Chicago Tribune calls the measure a “bold move” in the opposite direction of most retailers.
The grocer sent a letter to customers detailing its decision to move away from the loyalty card, saying it wants everyone to enjoy savings, not just cardholders.
The closest Jewel-Osco to Lincoln Park is at 2940 N. Ashland Ave., though there is one just south of the neighborhood on Division Street and one to the west West on North Milwaukee Avenue.
Competitors like Walgreens last year did just the opposite by launching its Balance Rewards card.
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Jewel has struggled in recent years to compete with rivals like Dominick’s Finer Foods and Walmart, according to Crain’s Chicago Business. The company pulls in roughly $5 billion in revenue and has about 25,000 employees.
“Jewel needs to become more price-competitive,” Neil Stern, a senior partner at local retail consultancy McMillan-Doolittle LLP told Crain's. “They have to eliminate the price disadvantage they have now vs. their competitors. Ineffective merchandising and pricing have been the big things contributing to a loss of market share for Jewel in recent years.”
But according to Jewel spokesperson Christine Wilcox, it’s all about simplifying the process for customers.
Wilcox told the Tribune the change reflects, "our wanting every customer who walks through the door to get the same deal as if they had a card on their keychain chain or not. We want things to be simple."
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Stores are currently removing “preferred” signs from the stores and collecting the cards from customers.
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