Loblaws to begin charging for additional loyalty perks
First Loblaws decided to give their loyalty programs a facelift by combining their PC Plus program and Shoppers Drug Mart’s Optimum program into one, by the name of PC Optimum. Now they are offering even more point incentives with their new PC Insiders program, but it comes at a cost.
"We are working hard to meet the changing needs of Canadians through the combined reach of our digital properties and retail network," Loblaws chairman Galen G. Weston said. "Together with our customers, we are excited to see where this program might take us next."
Back in August PC sold their financial business to CIBC, with whom they had worked with for years. And while CIBC rebranded PC Financial as Simplii Financial, customers with the old PC Financial MasterCard, can still accumulate PC Points. The new PC Insiders program will be available to those with PC MasterCards, in the hopes of keeping them loyal to the card.
And, while Mr. Weston expresses his excitement about the new project, to many, it is clear why. The cost mentioned above comes at a price tag of $9.99 a month, or an annual subscription of $99. So what is it exactly that PC MasterCard users will be getting for their additional monthly or annual fee? Let’s have a look:
- 20 per cent back in PC points on the essentials such as diapers, infant formula, and all PC Organics products in-store and online.
- 20 per cent back in PC points on all Joe Fresh products in-store and online at joefresh.com.
- 20 times the PC points every day when customers shop online at beautyBOUTIQUE.ca.
- Free Click & Collect pick-up service at nearly 200 locations.
- Free shipping on all beautyBOUTIQUE.ca and joefresh.com purchases.
- $99 PC travel credit once a year when booking a trip on pctravel.ca (annual subscriptions only).
By offering deals to those who shop in store and online, the program seems like Weston’s attempt at bridging the ever-widening gap of online and traditional brick and mortar stores.
"With this move Loblaw is trying to play in both fields — online and in-store," said Alina Nastasoiu, a marketing professor at the DeGroote School of Business at McMaster University in Hamilton.
For those who already have a PC MasterCard and shop regularly at both PC branded grocery stores, Jo Fresh, or at Shopper’s online beauty BOUTIQUE, the added cost might be worth it in the points that you'd get back. But for many, this may just be a cash sink that you would pay into and not get much use out of, or it could lead you to make the common mistake of buying items you don’t need in order to get points.