The strength of Meijer’s mPerks program became more evident yesterday as the Grand Rapids, Mich., based chain introduced the second specialization of the program. The Thursday afternoon announcement was effective immediately so new parents can take advantage of the company’s mPerks Baby Rewards for the first time today. The mPerks Baby Rewards program will allow members of the interactive internet based loyalty program to save on a variety of baby products including the lost leaders diapers and formula.
Typically diapers and baby formula are lost leaders for department stores as they are heavily competitive so must be sold at or below cost. Chains hope to regain the lost money by selling more profitable items to the customer, such as baby clothing, furniture or accessories.
In the program, as announced by Meijer, customers will save $10 for every $100 they spend in the baby department. However members must be aware that like other aspects of mPerks it is necessary to sign u online and enter your membership id in the terminal at each checkout.
Programs such as Meijer mPerks and Kroger Rewards are allowing the chains to compete against Walmart. Once an everyday low price leader, Walmart now runs ads frequently. In last week’s Sunday Detroit Free Press there were three separate ads for Walmart. Under Sam Walton, the chain’s founder, everyday pricing was key to establishing a consumer image of low price leadership. However multiple changes of leadership since Walton’s death has resulted in this recent stray from everyday low pricing and a return to frequent advertising.
Consumers can sign up for mPerks for free at Meijer.com.
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