A trio of news releases last week from Loblaw’s trumpeted its ‘success’ in helping shoppers fight high food prices. But a closer look at the numbers tells a less impressive story. There’s still lots of room to cut food prices!
The PC Optimum program has been around for a long time – at least in the context of the quickly changing, ever-evolving supermarket scene.
And Loblaw’s has chosen to spotlight the ‘groceries-back’ scheme amid an industry-wide marketing blitz in which all the major players are trying to convince consumers they are helping beat down high food prices…
Big numbers impress
Loblaw’s has just spun-out some big numbers in a pair of news releases claiming it has worked wonders for its faithful fans. Specifically, in savings through the longstanding PC Optimum loyalty program.
“Atlantic Canadians have taken home over $56 million worth of free groceries through PC Optimum this year,” One release declares. “Ontarians have taken home over $360 million worth,” another headline blares. “Western Canadians have taken home over $245 million worth of free groceries,” a third proclaims.
That’s a total of $661 million in ‘free’ groceries. And it’s a pretty impressive figure – if you take it as face value.
What is Optimum?
Shoppers have been able to participate in the Loblaw’s points program for years. More recently, the program was pan was updated from ‘PC Points’ to ‘PC Optimum‘, integrating it with some other PC financial and collaboration programs.
Now the plan not only lets shoppers earn points towards free groceries, but also:
- Earn 15 points on almost every dollar you spend at Shoppers Drug Mart and Pharmaprix.
- Earn PC Optimum points when you purchase fuel at more than 2000 Esso and Mobil stations across Canada.
- Earn points in-store, online, at points events and through personalized offers with your online account.
- Earn points even faster with PC Financial.
- PC MasterCard holders can earn ‘up to 10% back in points’ on purchases charged on the card.
- Every 10,000 points is like $10 worth of free stuff. Redeem your PC Optimum points at special Spend Your Points events to get even more value.
Sweeping claims
“Canadians today are looking for value, whether that means more savings in-store or earning more back in points when they shop. PC Optimum is the gateway to savings for Canadians, delivering tre-mendous value to customers,” says Mary MacIsaac, SVP of Loblaw Marketing & Control Brands, in the release.
Personal info-invasive
The Optimum program is disturbingly – to me, at least – invasive with respect to personal infor-mation. Detailed records are kept – in huge databases – of program members’ purchases.
Loblaw’s PC Optimum website simply says the data is used to formulate ‘personalized’ offers and specials. But if you want the benefits, you have to agree to the Optimum Terms and Conditions and the Loblaw’s Privacy Policy. And that’s where things get complicated…
The Privacy Policy states that Loblaw’s shares your info with more than a dozen ‘categories of third parties and service providers’.
On opt-out model
Consider, also, that Optimum Consent Policies are based on an ‘opt-out’ model:
“By subscribing to our programs, products and services and/or submitting information to us in con-nection with using our programs, products and services, you are providing your consent to the col-lection, use and disclosure of personal information as set out in this policy,” the Policy statement makes clear.
Furthermore: “In some cases, your consent may be ‘implied’ i.e. your permission is assumed based on your action or inaction at the point of collection, use or sharing of your personal information.”
How many Optimum members actually read the Terms or Privacy documents before signing their info away? They’re a big turn-off for me.
My take…
To truly gauge the benefits of the Optimum program, you have to look at the Big Picture. And the numbers there tell a different story.
First, Loblaw’s ‘earned’ a gross profit of $8.574 billion during the first six months of this year, ac-cording to its own official quarterly news releases dated May 1, 2024, July 25, 2024, and September 19, 2024, respectively… But it gave back only $661 million to loyalty program members for the same period. A relatively measly 7.70 percent.
Consider, also, that the ‘free groceries’ shoppers ‘claimed’ using points during the first 6 months of this year were calculated on their retail prices. But the actual redemptions cost Loblaw’s only the amount of the wholesale prices the chain paid to stock them in the first place.
All in all… That’s not really something for Loblaw’s to crow about. Seems to me, there’s still plenty of room to slash retail food prices by a significant amount…
~ Maggie J.