International News - Kroger mimics Tesco's Clubcard

US supermarket group Kroger is importing British know-how to develop a sophisticated customer loyalty card similar to Tesco’s.

Kroger, ranked fifth in the world grocery top 10 with sales of US$36.28 billion (£21.58 billion), has set up a joint venture with specialist consultancy and developer of the Tesco Clubcard, Dunnhumby, to deliver the new scheme across its 2,500 US stores.

Kroger has been working with Dunnhumby on the project for 18 months, following a worldwide review of supermarket best practice. The Tesco Clubcard particularly impressed Kroger.

The Kroger card will be the first of its kind in the US. According to the Retail Advertising and Marketing Association International, 66 per cent of US households belong to at least one frequent shopper programme.

However, the data collected is often under-utilised. Kroger, which has piloted the new card in Kentucky, aims to change that.

In the same way that Tesco Clubcard customers receive targeted, personalised offerings, the Dunnhumby model will enable Kroger to improve its decision making on product assortment and price ranging. ‘We admire what Dunnhumby has achieved with Tesco in the UK,’ said Kroger executive vice president Don McGeorge. ‘We believe that our customers will benefit significantly.’

Dunnhumby chief executive officer Edwina Dunn said the deal would help Kroger to stand out in a very competitive market. Up to 45 Dunnhumby staff will work with Kroger in Cincinnati.