CO-BRANDED ACME CREDIT CARD REWARDS LOYAL USERS

DEENA AMATO-McCOY

MALVERN, Pa. -- Acme Markets here is providing its customers with rewards for purchases charged on its new co-branded credit card, which also doubles as a frequent-shopper card for the retailer's loyalty program.

The co-branded card is available chainwide. "Customers can use our card at Acme stores and other retail outlets to earn points toward rewards for each purchase charged to the card," said Ed Spragg, vice president of advertising and special marketing for Acme. Customers of Acme, a division of American Stores, Salt Lake City, receive two points for every dollar spent at Acme stores, and one point for every dollar spent at other retail locations. Acme operates approximately 180 supermarkets.

"The premise behind the card is that customers start consolidating their shopping to Acme stores and earn extra points, rather than buying similar items at competing retailers," said Brian Koehler, vice president of retail payment systems for U.S. Bank, Minneapolis, which launched the co-branded card with Acme and Visa U.S.A., San Mateo, Calif., April 30.

As customers reach a threshold of 1,500 points, they are entitled to a variety of rewards, including discounts on various vacation packages. Customers reaching the 2,500-point level earn a $25 gift certificate good at any Acme store, and 25,000 points is worth a free airline ticket on American Airlines, Dallas.

"We always strive to offer our customers exceptional values," said Spragg. "The gift certificates let us help our customers save on their food bill, while rewarding them for shopping with us." Both Acme and U.S. Bank declined to comment on results, or the amount of the rewards issued thus far.

Acme and its co-branding partners offer three levels of card membership, including "secured" cards for people who might not otherwise qualify for a credit card. "For people that are not approved for either the Classic or the Gold [classes], we provide a secured card," said U.S. Bank's Koehler.

An added feature of the program is that Acme is linking the new card to its "SuperCard" frequent-shopper program. The cardholder's SuperCard account number and identifying bar code appears on the back of the new rewards card, eliminating customers' need to carry two cards.

Cardholders are charged an annual percentage rate of 16.59%. Customers transferring balances to Acme's credit card receive a 6.59% rate for six months, then the rate rises to the standard 16.59%. There is no annual fee connected to the card.

Customers can apply for the card at Acme stores, and some frequent-shopper cardholders are receiving pre-approved mailings, according to Koehler. The retailer is also planning to make applications available through its Web site, www.acmemarkets.com., by this fall.