Retail Watchers

Effective 01 March 2010, Safeway is discontinuing it's long-running airline miles program. In a letter mailed to cardholders, Safeway expressed their intention to focus on lower prices, and this would be one way to do it. Attached is a copy of the letter I received today.

Interestingly, these letters must be sent out based on mailing address, since I don't have a Vons Club card, I have a Safeway Club card.

submariner wrote:Effective 01 March 2010, Safeway is discontinuing it's long-running airline miles program. In a letter mailed to cardholders, Safeway expressed their intention to focus on lower prices, and this would be one way to do it.

This move has already been bemoaned on the flyertalk.com message boards. I was a little surprised to get the letter because, although I'd signed my card up a few years back, I haven't spent enough to ever get any miles -- from where I live, I'd have to go past two Ralphs in any direction to get to the nearest Vons or Pavilions, and the miles weren't worth it to me, especially now that I have a credit card that gets me triple miles on supermarket purchases anyway.

Too bad their prices are still terrible (though not as terrible as before), and they closed the store near me (this really did it). Kroger will continue to see the majority of my shopping dollar, even more since Safeway couldn't compete here.

Safeway cuts airline miles while Kroger is adding Shell to its fuel rewards program in certain markets, including San Diego where Ralphs has no fuel centers in addition to Nashville, Knoxville and Cincinnati-Dayton. It's a good trade off where Kroger doesn't have fuel or a nearby convenience chain, but Ohio, Kentucky and Tennessee have a strong Kroger Fuel presence. Shell is a more respected brand than Sunoco, used by Bigg's in Cincy and Cub in Dayton for fuel perks. Turkey Hill is also being expanded to the Cincy-Dayton region in addition to Columbus and Indianapolis. It's a lot like the issue with gift cards, you're sending business to other retailers, some of which are rivals, such as Fred Meyer and Target and Sears, or restaurants that are competing for food dollars. Airline Miles on the other hand, don't compete with SWY and probably only an insignificant number of their customers tap into the perks when compared to other perks offered, but it's a high profile perk.

Speculation is next, Burd is considering spinning the Blackhawk gift card subsidiary off for a cash infusion.
It does look like SWY is attempting to return to its roots, but its pricing and execution are stumbling points.

krogerclerk wrote:Safeway cuts airline miles while Kroger is adding Shell to its fuel rewards program in certain markets, including San Diego where Ralphs has no fuel centers in addition to Nashville, Knoxville and Cincinnati-Dayton.

Unfortunately I'm not conveniently near a Ralphs store

I've been going to Fresh & Easy a lot though, their pre-made meals are an excellent option for single people or with 2 or 3 people in the house...

krogerclerk wrote:Safeway cuts airline miles while Kroger is adding Shell to its fuel rewards program in certain markets, including San Diego where Ralphs has no fuel centers in addition to Nashville, Knoxville and Cincinnati-Dayton. It's a good trade off where Kroger doesn't have fuel or a nearby convenience chain, but Ohio, Kentucky and Tennessee have a strong Kroger Fuel presence. Shell is a more respected brand than Sunoco, used by Bigg's in Cincy and Cub in Dayton for fuel perks. Turkey Hill is also being expanded to the Cincy-Dayton region in addition to Columbus and Indianapolis. It's a lot like the issue with gift cards, you're sending business to other retailers, some of which are rivals, such as Fred Meyer and Target and Sears, or restaurants that are competing for food dollars. Airline Miles on the other hand, don't compete with SWY and probably only an insignificant number of their customers tap into the perks when compared to other perks offered, but it's a high profile perk.

They're adding Shell fuel rewards in Fred Meyer stores now too (at least the ones without attached fuel stations, and it appears that there are geographic limitations as well.)

The Kroger/Shell partnership has now expanded to Los Angeles. My local Ralphs doesn't seem to have anything posted about the promotion -- I just happened to see "insert your Ralphs Rewards card" on the pump display at a Shell where I'd stopped to fill up.