Blog: Dean BestSpanish retailer Caprabo aims to build customer loyalty

Dean Best | 11 October 2012

Spanish supermarket chain Caprabo has relaunched its loyalty scheme in a bid to win over consumers no doubt searching for value in a country rocked by its economic problems.

Spain is one of the toughest European economies in which to operate. One of the country's largest retailers, El Corte Ingles, saw its profits drop by a third in 2011 as it battled a shift towards cheaper products.

And Caprabo's owner, Spanish retailer Eroski, reported last week its net losses widened in the first half of the year, with sales and traffic down.

Retailers are using all sorts of tactics to lure customers. According to the latest data from the just-food international basket, private-label prices in Spain are among the lowest in Europe. Retailers also account for a relatively larger share of volume sales. Retailers in Spain really get behind their own-label ranges and push it as a core part of their strategy as they try to cope with shopper pressure on prices.

And loyalty is another tool being used. Caprabo claims to have "shaken up" the relationship with customers with its new My Club Caprabo scheme. It is offering customers over 1,000 "exclusive" prices and a range of other discounts, including by category to "broaden in choice in certain deals", it said.

And crucially, echoing the recent thoughts of Tesco CEO Philip Clarke, personalisation is a key part of the programme. "Each client is unique, has different needs and wants to be treated differently and in a personalised way," CEO Alberto Ojinaga said. "My Club Caprabo will ... give special treatment to the best clients, providing tailored information and benefits."

Caprabo said it will invest EUR20m in the scheme but claims it will boost sales by 3%.


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