Whole Foods To Launch Rewards

Whole Foods is testing a loyalty program, something the grocer has resisted for more than 30 years, Bloomberg reported.

The chain will test the program in a Princeton, N.J., store this month and expand the trial to Philadelphia later this year. The company plans to introduce the loyalty program nationwide by the end of 2015, according to Michael Silverman, a Whole Foods spokesman.

The program will use a physical rewards card or mobile-phone app, which will let Whole Foods customers earn points that can be redeemed for merchandise discounts and store experiences such as cooking classes. The Princeton and Philadelphia trials are expected to last six to eight months.

Loyalty and rewards programs are standard fare in the grocery industry, but Whole Foods, the nation’s largest natural-foods retailer, has only recently started to react to stiffer competition from smaller natural-foods chains and major grocers like Kroger and Walmart, which are now selling more natural and healthy foods.

Along with the loyalty program, the chain recently lowered prices, especially on produce, and will try to boost sales with a new marketing campaign this fall.