Last year about this time, retailers began falling over each other offering special deals for consumers that would bring their tax refunds and/or stimulus checks to the store in exchange for various add-on types of credits. Among the most popular types of promotions included exchanging the government check for a gift card plus some additional dollars, usually around 10 percent of the refund, that could be spent in the retailer's store.
Many, looking back, were dubious about how much business these types of promotions would bring retailers. But, based on the announcement that Supervalu is running a similar program this year, it must have worked for at least one chain operator.
Supervalu, according to a Minneapolis Star-Tribune report, is giving consumers additional "refund rewards" of $20 or $30 when they purchase a $250 or $300 gift card from the company's Acme, Albertsons, bigg's, Cub Foods, Farm Fresh, Hornbacher's, Jewel-Osco and Shaw's/Star Market chains. The program will run through April 15.
"We know that consumers' budgets are strained like never before, so we're looking for ways to help our shoppers find value at the grocery store," said Jeff Noddle, chairman and CEO of Supervalu, in a press release. "This program will help our shoppers put more in their carts, whether they're looking to stock up on the staples or purchase items for a special meal."
Mr. Noddle has been at the forefront of grocery execs calling on consumer packaged goods companies to lower prices.
Discussion Questions: Will the bonus of an extra 10 percent be enough for large numbers of consumers to bring their tax refunds to chains owned by Supervalu this year? Are consumers more likely to participate in this type of promotion vs. last year when the government issued one-time stimulus checks?