Sobeys recently decided to dump Air Miles and start its own loyalty program. Empire, Sobeys parent company, is opting to join the Bank of Nova Scotia and Cineplex as co-owner of the Scene+ program. This latest move by Sobeys is no coincidence. As we brace for higher food prices and cope with a post-COVID workforce still trying to figure things out, loyalty will probably be the next major battle ground for Canadian grocers.
The Scene+ program at Sobeys will start in Atlantic Canada in a few months, and the cross-country roll out will end by early 2023. The partnership with Air Miles will officially end soon after. That’s fast. Most Sobeys-owned stores, including its online service Voilà will have the program. Given how the market is changing right now, this move was critical and perhaps long overdue.
Since March 2020, 26% of Canadians have switched the primary location where they purchase food on a regular basis, according to a recent poll by Angus Reid. Many have moved or have opted to change their grocery shopping location for one reason or another. Having more people working from home has also triggered behavioural changes where grocery shopping is concerned. And with food inflation at 10% these days, consumers are either trading down or changing food shopping habits almost weekly. With higher food prices, everything is negotiable. Where people buy food, and what they buy is constantly changing these days, and keeping customers engaged with brands and stores is going to be challenging over the next several years. Coupled with the fact that younger consumers are rarely keen on being dedicated to any brands or stores these days, consumers need to be hardwired to become loyal, more than ever.
Sobeys quick roll-out will serve the company well, as it needed a better loyalty program. PC Optimum is by far the most popular program where foods are involved. More than 63% of Canadians use the PC Optimum program, followed by Air Miles at only 18.3% according to a recent survey by Caddle. Interestingly, the current Scene program is 6th on the list, at a measly 1.9%. The gap between PC Optimum and the rest of the field is enormous. What’s more important, while 58% of Canadians use loyalty programs at the grocery store every week, 73% of us are influenced by what kinds of benefits these programs can offer us.
With few promotions going on at the grocery store and higher prices, Canadians will seek any help they can get. And food prices aren’t about to drop anytime soon.
Air Miles is a versatile loyalty program used by many retailers. But for Sobeys, it became just an invisible advantage few really cared about. Sobeys never really had control over it. With the high number of miles you could collect, the program became confusing for both members and retailers, including Sobeys. But knowing that Metro, one of Sobeys’ main competitors in Eastern Canada, also had a deal with Air Miles was becoming increasingly awkward in an era in which getting customers back, and back again, will be challenging. The market is just not the same as it was in 2020 when the pandemic started. Consumers are now economically challenged in many ways and a strong loyalty program can allow Sobeys to empathize with a struggling public.
With higher prices and an acute focus on private labels, Loblaws, with its PC Optimum program, clearly has an advantage Sobeys wanted to address. While Sobeys is getting its “private label” act together, it also needs a program to push its own brands like Compliments and Panache. Loblaw’s private labelling strategy, along with President’s Choice and No Name, has left the competition in the dust.
Only time will tell as to what the program will look like and how it will get consumers to buy more often at Sobeys. But seeing Empire/Sobeys, a Nova Scotia-based company partner with the Bank of Nova Scotia was anything but a surprise. Even if Scene doesn’t have the clout of a PC Optimum program, it has the potential to do well. Scene has 10 million members, but the awareness of the brand is frankly lacklustre and few use points. Sobeys’ network could change that. It also needs a unique name, a different one, to make it Sobeys’ own.
Regardless, for Sobeys, working with Air Miles was like rowing against the current. Sobeys was likely just waiting for its contractual obligations to end, so it could move on to bolster a program it can better control.
As a member of Scene+, PC Optimum, AirMiles and Metro loyalty programs I value AirMiles most. I can earn AirMiles at many of the places I regularly shop through AirMilesShops. Neither Scene+ nor PC Optimum have nearly the breadth of options as AirMiles. IGA (Québec) is where I prefer to shop but I have to use Metro sometimes because it’s the closest store. I wish that wasn’t the case because they don’t stock many of the items I regularly buy and the quality of the Metro house brand is poor. I’ll continue to shop at IGA because quality and range of products are more important to me than location but AirMiles was a nice perk that I’m going to miss.
If Sobey’s doesn’t offer Air Miles I have absolutely no reason to shop at Sobeys. They are not known for having low prices. I hate the rebranding of the Compilments brand and loath the colour and packaging of the Panache brand. Too bad local owners have no say in their stores. …S Jacobs
Ditto
Ditto…they’re very over-priced.
I have always preferred the PC Optimum branding and prefer to shop Atlantic Superstore, if nothing else because Sobeys’ regular (non-sale) prices have always been outrageous. That said convenience has often pushed me into a Sobey’s store. Points are extremely slow to collect with airmiles and have a poor payout ratio. Good Riddance – I can’t wait to be done with Air Miles.
I find it strange the author did not dig into the fact that many major brands have dumped air miles recently. Brands like Lowe’s, Rona, LCBO just to name a few.
Many more, like Uniqlo, have joined. Almost all the places I shop for clothing, personal care and miscellaneous items are on AirMilesShops. I’ve never been into Lowes or LCBO and rarely shop at Rona so I guess it depends on your shopping habits.
I was a Safeway customer while safeway had the Airmile program. Then Safeway was converted to Freshco. With Freshco, no more airmiles, and lower variety. I switched to Sobeys. Higher prices yes. However better quality, variety, airmiles, and outstanding customer service. The customer service at superstore did not exist. Lastly, I’ve never had my Airmiles hacked, but have had my pc optimum points hacked.
This is a slap in the face for using Safeway for years…now Sobeys is squashing the airmiles plan…well it helps people who live in cities that cineplex or if you don’t bank with the Bank of Nova Scotia…but you still want us to shop at the most ridiculous prices…the larger store chain with the highest prices. It is cheaper to shop at No Frills…get points on a Optimum Card and use it for food or gas. Wake up Sobey’s.
In the ’00s I shopped primarily at Safeway. I used my Club Card and collected Air Miles and loved it. Lately, I’ve been avoiding Safeway and using PC Express Curbside pick up at No Frill and RCSS since Voila curbside is not available at my nearest Sobeys and Safeway stores.
This is going to impact me as a single mom that relys on my air miles that I recieve daily and get 6 a day for scripts not to mention I buy alot of my daily needs there because of being the closes to walk to but now if sobeys owns lawtons there goes my bread milk and egg money that I think any single mom on a budget needs and it was always my guarantee to get 20 cash miles a month but now I guesse I’ll be changing pharmacies to get optimum points and be able to not worry how to afford simple something back from all the money the make off my medications I buy daily that I’m shure ends up in sobeys bank account that I hope goes down for making a decision based on a guesse if will help them or give there competition their earnings that they cant even predict how screwed they are gonna be.Sobeys should really go back to the drawing board if they think they are gonna even have there customers that use there miles and get enough to pay for something that rewards you with scene points sorry not everyone is into that scene and food is nessesoty theaters and movies are not .I’m actually discusted r/n .
So true. I collect mine all year just to use them at Christmas. Makes a major difference in our household and you get to pick up the extras you wouldn’t normally buy. It’s a big help to anyone, especially single parents. Sad they chose that route. They just lost a customer. 🥺
I have both Air Miles and Scene which I use frequently
I guess we will have to wait and see what kind of rewards Sobey’s will fork out and how many Scene points per dollar a customer will earn. I guess it all depends how much you shop and what the retailer offers for points and airmiles. Would like to see how things go through
UPDATE:
Well, Scene works pretty well. The good thing about Airmiles (Sobey’s) was that you got a mile for every $20 (no matter what you bought) With Scene, it’s not like that……you get bonus scene points DEPENDING what you buy (That is not good)
Scene, you get more bang for your buck (Limited to: Shell, Sobey’s, Cineplex and Ultimate Dining Card…..other retailers you need alot more Scene points to redeem) but I notice you can collect Scene Points faster than Airmiles
On the other hand, Airmiles has more variety on their Cash Miles program (more selection)
So if collecting points faster is what you want, then Scene is the way to go. If you want more selection for rewards then it’s Airmiles
Airmiles=0.05% cash value compare to Scene =1%, do the math guys.
The only reason I shopped a Sobeys was because I could use air miles that I accumulate from gas purchases towards cash directly off my grocery bill at the check out. Sobeys will never see me again and I will increase my grocery shopping to basically 100% Wal-Mart super store purchases. Adios Sobeys, it’s been a slice and don’t let the door hit you on your exit from my shopping life!
I’m just hoping that Scene will offer an option to save on groceries. I still haven’t found an answer to that question.
Amazing. Air Miles was my reason for shopping at Safeway and Sobeys. Amazing bonuses that paid great dividends. Now we buy $3000 of groceries for a B Grade movie ticket? REALLY??
Won’t be shopping at Foodland anymore! I will be heading to Metro.
Scene2 points expiry is a problem as well.
Have been shopping at Safeway for decades. I guess I will have to switch allegiance and do my groceries nearby when the Air Miles program comes to an end in September.
Dropped Sobeys
Scene is nothing
Sobeys is expensive
This move sucks. Just as we get a sobeys next to us, and we are avid air miles collectors, they pull this shit head stunt.
Bye sobeys, we will go somewhere else.
I have been a loyal Safeway customer for 30 years. Customer service was great and continued shopping because of the Airmiles program. The miles I have collected have contributed to a number of family vacations and All inclusive vacations. Prices though at Safeway/Sobeys are just too much and without the incentive of Air miles, sadly I will cease being a loyal/regular shopper.
I agree!
I have been a loyal Sobey’s and Safeway customer for years. I have collected points for a family visits out of province. Collecting these points has been a highlight of my shopping experience. I have no loyalty to either Sobey’s or Safeway now that they have cancelled Air Miles. I have a feeling that they will lose many customers since there are many other supermarket choices. So long, Sobey’s and Safeway.
I have been an Air Miles since the day it started ( 25 yrs. now ) and guess what , it is not gonna stop . When we moved , I was delighted that Foodland had Air Miles — but now that’s not happening anymore . I will now make the trek to the nearest Metro there is , so I can continue enjoying my rewards . Let’s face it , Foodland (sobeys ) is just as expensive as any other store —– so, goodbye Foodland , I’m going where I’m getting bang for my buck — thanks for the memories !!!!!!!!!!!!!!!!
I only go to sobies for the air miles, Superstore is cheaper but I don’t like the customer service and the fact that it does not have air miles. If you’re going to collect these cheap PC optimum points you might as well shop somewhere cheaper. I like the miles not for the cash value but for the perks of tickets, concert /event (even ciniplex movie passes) tickets, electronics, tools, almost any basic usable household item you can think of you can get with air miles. At least shell will get my business still.
Very disappointed Safeway dropped Air miles. Only reason I will use Safeway now is for pharmacy prescriptions.
I started collecting Air Miles in 1991 and loved double dipping so I had the trip of my life (cost 10,000 Air Miles) and spent 21 days on 5 Hawaiin Islands including a 7 Day cruise. Freshco has some customer service lacking and prices to compare with Sobey’s – I miss Safeway and I will really miss collecting Bonus Air Miles when I go shopping now.
No matter how you couch the words, it reads as “Sobeys ditches Air Miles to keep more money for itself.” Clearly, leaving a third-party loyalty rewards program for one they conveniently co-own themselves means they get to pay the cost of offering a loyalty reward program back to themselves.
They’re entitled to do whatever they want, but don’t try to make it sound like they’re doing anything but that.
I use Air Miles wherever I can, and it does guide which company I buy gas from, and where I regularly buy groceries. I never bothered with PC Optimum. Too much trouble for too limited a use case. Scene+ will be the same. Don’t want to have sign up to multiple loyalty programs, so the switch engenders no “loyalty” from me towards Sobeys. It just means I’m steered more towards Metro and less towards Sobeys now.
I am truly beyond disappointed with Sobeys and their action of stopping the air miles reward program. The new Scene card doesn’t hold a candle to the Air Miles program. In fact, the Scene card means nothing to me. Sobeys has not advanced but taken hundreds of steps backward. Quite the disappointment, not only losing Air Miles Reward Program but for Sobeys to say that their customers wanted the Scene program. I dispute that ! I often shop now at SuperStore. If they truly appreciated their loyal customers, they would bring back the Air Miles program. Perhaps it is all about the money and how they can make more by offering an inferior program. Very sad.
This was a fascinating read! It’s interesting to see how customer preferences and loyalty programs evolve. I can understand why Sobeys made the decision to move away from Air Miles; it seems like a growing number of shoppers prefer more straightforward rewards. Looking forward to seeing what they offer next!