Created a New Loyalty Program - School Spirit Program

• Situation

• Customer franchise deteriorating (18% loyal customers to 13% =$5b in lost sales)
• Competitors continuing to increase share and pulling customers away

• Obstacles

• Could not afford more discounts, so could not use traditional "grocery loyalty program"
• Given time-line to go from concept to full national implementation across 2500 stores in just 10 weeks

• Actions

• Researched our customer… "mom's with school kids"
• Created new School Spirit Program as new "loyalty program"
• Went from power-point concept to national roll-out in just 10 weeks

• Results

• Enrolled two-thirds of families with school kids in first six months (29,000,000 families)
• Drove over $1billion in incremental sales in first year…$180,000,000 EBITA
• Delivered program at lowest basis point cost in loyalty industry (<25bps verses industry at 70bps+)