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PATHMARK BABY CLUB AIMS AT CATEGORY

CARTERET, N.J. -- Pathmark Stores here said it's happy with shoppers' reception to its new baby club, which is designed to pamper customers who might be inclined to pick up baby staples in other channels.Pathmark is scheduled to end a three-month-long promotion on Sept. 16 that rewards shoppers who spend at least $100 using their Pathmark Advantage Club card on any of more than 1,700 private-label

CARTERET, N.J. -- Pathmark Stores here said it's happy with shoppers' reception to its new baby club, which is designed to pamper customers who might be inclined to pick up baby staples in other channels.

Pathmark is scheduled to end a three-month-long promotion on Sept. 16 that rewards shoppers who spend at least $100 using their Pathmark Advantage Club card on any of more than 1,700 private-label and nationally branded baby products. Those who pass the threshold are given a certificate for $10 off their next shopping order of $50 or more. Products were identified by shelf tags, and in some cases, promoted in weekly circulars.

Rich Savner, spokesman for the independent chain, wouldn't share sales results or goals of the promotion, but said the company was "pleasantly surprised at the reception we got from people who were purchasing targeted items."

The summer launch was designed to nurture customer loyalty at a time of year when people are more likely to be traveling and visiting different stores, Savner said. More broadly, though, the move is a defense against specialty and club stores that have encroached on supermarkets' baby aisles by offering low-priced baby staples, and picking up other grocery sales in the process. Supermarkets' diaper sales alone dropped 6.8% in the 52 weeks ended June 13, following declines of 7.6% and 10.8% in the previous two calendar years, for instance, according to Information Resources Inc., Chicago.

The giant in this category, Babies "R" Us, is a big player in Pathmark's core market of metro New York-New Jersey, and is a fast-growing profit center of Wayne, N.J.-based parent Toys "R" Us, recording same-store sales growth of 1.8% in the second quarter ended July 31 and 3.2% year-to-date.

"There's obviously a lot of competition in that category, not only from supermarkets but other big-box retailers," Savner said. "The big boxes continue to proliferate. There's been a focus by [Babies "R" Us] on baby products."

Pathmark, with about 142 stores in the New York-New Jersey and Philadelphia metro markets, also included baby items in its everyday-low-pricing strategy affecting 6,000 health and beauty care items, in place since February, Savner said.

Baby clubs have come and gone over the past 10 years -- with mixed success. Those that seem to work use customer loyalty card data and provide parenting information to forge an ongoing bond with shoppers, observers commented.

Pathmark has yet to announce other components of its baby club; Savner said those and future promotions would be determined based on the success of the three-month effort.