Safeway sees benefits from loyalty program

• Published February 22, 2013 Modified February 21, 2013

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Grocery store operator Safeway said Thursday its customer loyalty program helped its fourth-quarter net income jump 13 percent in the fourth quarter, far surpassing expectations.

Safeway has been investing heavily in its “Just for U” customer loyalty program, which offers personalized discounts based on past purchases. The Pleasanton, Calif.-based grocer said Thursday the program is driving market share gains and profits, evidence that the investment is beginning to pay off.

CEO Steven Burd said about 45 percent of its sales are from people registered for its loyalty program.

So far the program is performing better than expectations, Burd said.

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