Ralphs and Lucky Scrap Frequent-Shopper Plans

A yearlong test program to reward loyal grocery shoppers with rebates or merchandise is being discontinued by the Ralphs and Lucky supermarket chains.

Two Eastern supermarket chains are also ending limited testing of frequent-shopper programs run by Catalina Marketing Corp. of Anaheim. After an initial surge of customer enthusiasm, shoppers lost interest when they realized how slowly they were earning bonuses on the system, said Al Marasca, executive vice president of marketing for Ralphs Grocery Co.

“We tested the program because it seemed to be a program that made sense,” Marasca said. But compared to some of the chain’s other promotional programs, “the customers told us that this was just not a big deal.”

Customers at four Ralphs stores and four Lucky stores in Southern California were given plastic identification cards with a bar code on the back that identified the shoppers. A scanner links the customer to purchases made and rewards him or her with rebates or points toward the purchase of merchandise--much as a frequent flyer piles up airline mileage toward free travel.

Dan Granger of Catalina Marketing said the test was due to lapse at the end of September, after being extended three months. Also discontinuing the test are the Giant and Pathmark chains in the East.

“It was just a test of some ideas,” Granger said. “We’ve learned a lot, and they did also.”

Granger said the frequent-shopper program was a tiny part of Catalina Marketing’s business. The company is best known for its electronic coupon dispensers that spit out cents-off coupons right at the register.

“We have 3,300 grocery stores across the country doing checkout coupons as well as over 400 in Southern California,” he said. “Quite frankly, it doesn’t impact the rest of our business.”

The program at all four grocery chains, including operating costs and merchandise awarded, ran up a tab of roughly $1 million through March, he said.