KROGER DEALS SHOPPER CARD TO 82 UNITS IN MICHIGAN

KIM ANN ZIMMERMANN

LIVONIA, Mich. -- Kroger Co. of Michigan here introduced a frequent-shopper program to its 82 Michigan stores, representing a $12 million investment in technology, according to information released by the company late last month.

"The KrogerPlus technology represents a new investment in Michigan of $12 million, exclusive of training and marketing efforts," said Marnette Perry, president of Kroger Co. of Michigan, in a statement issued by the company.

Michigan is the fifth and currently the largest marketing area of the parent company, Kroger Co., Cincinnati, participating in the KrogerPlus program. Kroger began rolling out the loyalty program to stores operating under the Kroger banner about a year ago, according to a source familiar with the situation.

As part of the enrollment process, KrogerPlus members can choose to receive select marketing offers, some of which they will receive by mail.

Kroger Co. of Michigan plans to expand the program to include targeted mailings based on consumers' buying habits, as well as sweepstakes and affinity programs. "That should happen soon," said Michael Layne, spokesman for the Michigan division.

The KrogerPlus Shopper's Card will apply to meats and seafood, fruits, vegetables and other weighed and perishable items, as well as advertised specials throughout the Kroger store.

"Significantly, Michigan becomes the largest Kroger marketing area and now the fifth Kroger market nationwide to implement the firm's KrogerPlus Shopper's Card program. KrogerPlus is an important part of our strategic investment in targeted marketing to our customers," Perry added. "Bringing KrogerPlus first to Michigan, among the nation's very largest metropolitan statistical areas, signals the importance of this market to Kroger and the confidence we have in our associates to implement this program."

Privacy is a concern, according to a company official, and Kroger will not release any individual or grouped shopping information to list services, manufacturers or other vendors.

Earlier this year, Wild Oats Markets, Boulder, Colo., disbanded its frequent-shopper program, citing privacy concerns as one of the factors for discontinuing the program

The application clearly states Kroger's privacy policy, which is to maintain the shopper's name and address and any data collected at checkout in the strictest confidence. The form does not ask for any demographic information and consumers can choose not to receive any mailings or related offers based on shopping habits.

Targeted offers to KrogerPlus members will be generated within the Kroger system and Kroger will not sell customer names or shopping information to any other company, officials stated. Pharmacy prescription and video rental transactions will involve the KrogerPlus Shopper's Card, and pharmacy history will not be captured or tracked on the KrogerPlus Shopper's Card.

"We are extremely sensitive to the legitimate security and privacy concerns of our customers. Privacy procedures and standards are an important part of our staff training for KrogerPlus," Perry stated.