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Business & Tech

Shaws, Star Market Cancel Reward Cards

The company that owns Shaw's and Star Market has scrapped its Reward Card program, citing the desire to maintain lower prices for all customers rather than only those who show their cards at the register.

By Casey Meserve, Plymouth Patch editor:

If you're still carrying a Shaw's or Star Market reward card in your wallet or as a tag on your keychain, it's time to lighten the load.

The company that owns Shaw’s and Star Market has scrapped its Reward Card program, citing the desire to maintain lower prices for all customers rather than only those who show their cards at the register.

The change seems to be a trend in the supermarket business, where several growing chains, such as Roche Bros. and Market Basket, do not offer the cards.

The change is sparking some criticism from customers, who are concerned that the change will mean higher prices on grocery store staples. 

Patch readers offered a range of opinions on the subject:

Karen Anderson Coates said she likes the change, "My key ring is so full!"

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But Ted Monaghan said he thinks the change is just a bait and switch. "I think my grocery bill will rise."

Shari Thelen Marquis said she was always concerned about the data collected each time she used the card. "I always felt that they were tracking what I buy with the cards so they can sell the data to marketers."

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Others said the change won't affect their shopping habits. 

"Smart," Julie Gilman said. "But I'll still be shopping at Market Basket!"

"I like not having cards all the time but I don't think the prices will drop enough if at all. I've been waiting for gas prices to drop for years," 
Lori Wiggy Dorley Jones said.

Perhaps ironically, when the reward program was rolled out in 2000 consumer advocates criticized the company for tracking purchases by customers’ names. Customers have gotten used to the cards however, as more retailers from pharmacies to auto parts stores began issuing the cards.

The company says it will also lower prices on thousands of items in all of its 169 locations.

“All of our customers deserve to get the lowest price on their groceries without needing to carry a Rewards Card with them,” Shane Sampson, president of Shaw’s and Star Market said in a press release. “Our goal is to provide our customers with an experience that is simple, easy and focused directly on them. Every customer who walks through our door deserves our best – from service to foods to pricing—and these lower prices are what our customers can expect from us every time they visit one of our stores.” 

The company is calling the move “Card Free Savings,” which is part of a new marketing campaign to reinvigorate the brand, and includes redesigning the circular and in-store signage. “Our new marketing campaign highlights that there is a renewed commitment to quality and service at Shaw’s and Star Market.

Company spokesman Steve Sylven said eliminating the cards is “in our customers’ best interest” while offering “the same, best prices to everyone.”

Tracking individual shopping habits is no longer as critical as it once was, Sylven said. What’s important is neighborhood trends, what items sell in what areas. He added that the chain is not changing suppliers and the quality of products will still be the same.

“These lower prices are not a short-term promotion, or a sales price that will change with the next circular release,” Sylven said.  “These are lower prices that customers can expect from us every time they visit.  I should also point out that we will still be offering great promotions and sales items each week on top of the lower prices.”

The switch isn’t necessarily in response to particular grocery retailers; rather it’s a response to competition from all grocery retailers.

“Competition helps us stay sharp and, ultimately, is good for customers.  We are committed to running great stores and providing an exceptional shopping experience by focusing our efforts on what customers want – impeccable customer service, shelves full of a variety of fresh products and competitive prices,” Sylven said.

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