Just for U Could End Print Ads: Safeway

[Sherman A1]

PLEASANTON, Calif. — Safeway here said Thursday the success of its Just for U digital program may enable it to discontinue print ads in the U.S. by the end of the year.

In a conference call with analysts to discuss financial results for the year and fourth quarter that ended Dec. 29, Steve Burd, chairman and chief executive officer, also said the chain’s health and wellness initiative, whose launch was scheduled for last year’s fourth quarter, should be ready to go by mid-year. Responding to a question about whether Safeway would consider selling its Canadian operation, he said the chain will do “the sensible thing.”

Asked when the Just for U program might allow the chain to pull back on promotional spending, Burd said, “We could get there probably late in 2013 — and as people become more digital, we see it as an opportunity get out of newspaper ads and personalize the ads for every household,” he said.

According to Burd, Safeway has registered 5.4 million U.S. households in its Just for U program, or 45% of its sales base — a number that could reach 55% by year’s end and ultimately reach a maximum level of 65%, he noted. Just for U is scheduled to be introduced in Safeway’s Canadian division by mid-year, he added.


Read More: http://supermarketnews.com/retail-amp-financial/just-u-could-end-print-ads-safeway#ixzz2M9DJtpXG

[SoCalNative]

1. But..I like getting my grocery ads in the mail every week

[Sherman A1]

2. Agreed

Time will tell if this is to become a trend or if there is sufficient backlash by consumers. It will most certainly have an affect on those that are not among the "wired" in the community.

[Stinky The Clown]

3. i wish they'd get rid of those crappy self-checkout things.

[Sherman A1]

4. One store did last year

I think it was Alberston's in the SW. Stated the cost to maintain them as the reason if I recall correctly.

[justabob]

10. also loss of impulse sales

One story I read talked about how self checkouts don't have all that stuff.... lighters, razors, batteries, candy, magazines.... around the checkout area handy to throw into your basket at the last minute, so they lost a significant bit of revenue that way too.

[Gormy Cuss]

5. "Just for you"=means Safeway will set the price based on your buying patterns.

It's just the next level of the club card fakery.

[Sherman A1]

6. Certainly means that they will target

your "advertisements" based upon your shopping patterns.

[Gormy Cuss]

8. Safeway already offers different discounts based on club card data.

The sad truth of it is, most of the "member sales" offered with affinity card programs are no better than the general sales offered at other, similar retailers with out card programs. IOW, people are giving up privacy for bupkis.

[NoPasaran]

7. One more nail in the coffin of the newspaper

[jmowreader]

9. Just for U could end Safeway

There are a few problems with this...

problem 1: not everyone has a smartphone. Not everyone WILL have a smartphone.

problem 2: not everyone who has a smartphone will subscribe to Just for U. Look at Burd's numbers: they expect no more than 65 percent of their "sales base" - the people who have Safeway Club cards? - to subscribe. By getting rid of print advertising they blow off a hell of a lot of people, and all those people have alternatives. In Safeway's sales area there are plenty of supermarkets, and most of them sell for less than Safeway does.

problem 3: Just for U is geared to the person who walks into the store for twenty items and leaves with exactly those twenty items. Print ads encourage "hey, I need that too" shopping.

I can definitely see them cutting down on their print advertising; we're certainly not seeing as much Safeway preprint as we once did. ('Course, there are only two Safeway stores in Coeur d'Alene.) But getting rid of it? Not a good idea.