Several loyal customers of Calgary Co-op are voicing their concerns over the company’s new membership rewards program.
The grocer recently “refreshed” its annual patronage rebate program to be delivered through a new, member-exclusive app instead of a physical cheque. The money accumulated on the app will now also have to be spent in the store.
Audrey Niles is one of many customers who have expressed their dislike for the revamped program online and in emails to Global News. She’s been a Calgary Co-op member since the early 1980s and said she appreciated getting a yearly cheque.
“I would put it in the bank and spend it on dinners or clothing or wherever I wanted to,” she told Global News. “It was cash in my pocket. I didn’t feel I was obligated to spend it at Co-op. Now I don’t have a choice.”
“It just feels like they’re giving you money and then taking it back and keeping it in the company, right?”
How it will work
Calgary Co-op told Global News that the new program actually provides members with “additional value, more ways to save, and up-to-date insight” into their account.
Officials said that a significant number of members have already downloaded the app, and downloads are increasing each day. Those on the app, officials added, received their patronage return earlier this year in the Bonus Cash bubble of their app, which they said can be redeemed across all Calgary Co-op businesses.
A message on the company’s website said membership services teams will work with those without technology to make sure no one loses out on any accumulated funds.
“All Calgary Co-op members will continue to earn patronage and receive their patronage return, with or without the app.”
Tax slips
A number of shoppers have also expressed concerns about tax slips that have been previously sent out by the company for any rebate over $100. They questioned whether those slips would still be sent out and need to be claimed now that any rebates had to be used in-store.
Calgary Co-op confirmed, “T4As will be available at the end of January. This is a membership program and patronage is earned from purchases made at Calgary Co-op.”
Members were advised to check for more patronage information on the company’s website.
Calgary Co-op also pointed out the bylaw amendment regarding patronage rates and payout was presented in advance and voted in at last year’s annual general meeting by members.
Niles maintained she didn’t know about it until recently, adding she and others would have appreciated more consultation on the changes.
“It just feels so out of the blue,” she said.
Good business move
Sylvain Charlebois is a researcher and professor in food distribution and policy at Dalhousie University in Halifax. He told Global News while some shoppers won’t like Calgary Co-op’s move, it makes business sense in a very competitive retail and grocery market.
“I think it’s going to be a good move for the company.”
“It’s not surprising to see a change. The change actually makes sense if you want to broaden your consumer base,” he added.
Still, Charlebois added it’s important for all companies to realize small changes may have a big impact on shoppers and grocers need make sure they clearly communicate any change to their customers — especially these days when grocers are under a tremendous amount of scrutiny.
“You want to inform your public, your consumers, as quickly as possible to at least let them know what major changes are coming,” he said. “Especially with Co-op customers.”
“When they show up at the store they don’t just feel like customers, they feel like they’re owners. This is part of them and so you want to respect that relationship as much as possible.”
Charlebois finished off by pointing out loyalty is going to be “the big battle ground of 2024” and Co-op needs to sell members on the benefits of a new program.
“Loyalty programs are sacred!”
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