Loyalty Marketing

By Ken Nisch, chairman, JGA

Issaquah, Wash. -- Costco Wholesale Corp. reported an 11% increase in its fourth quarter net income, below forecasts. The company also announced that it will raise its membership fees starting Nov. 1.

Costco's net income rose to $478 million for the period ended Aug. 28, up from $432 million in the year-ago period. The quarter included a "last-in, first-out" inventory charge of four cents per share. This charge reflects a requirement that the company revalue its inventory if prices rise or fall notably.

ISSAQUAH, Wash. — Costco membership seems to defy current consumer trends as the warehouse club announced Wednesday that it would raise its annual membership fees at the same time reporting increases in fourth quarter sales and earnings.

Wayne, N.J. --Toys "R" Us Inc. will expand its layaway program and incorporate flexible payment options in order to spur holiday sales.

The chain’s layaway program, offered at its Toys "R" Us and Babies "R" Us stores nationwide, in conjunction with a limited-time Bill Me Later service, will enable customers to make a series of smaller payments over time.

Boston -- Survey results released Tuesday by Shop.org showed that almost half of all retailers plan to offer eGifting this holiday season and 44% are looking at location-based deals as a key element of their mobile marketing strategies. 

The survey, sponsored by CashStar and conducted in September at the annual Shop.org Retail Summit in Boston, found a growing concern among retailers about the lack of personalization of gift cards. 

San Diego — Teradata announced Tuesday that Hallmark Cards Inc. has expanded its data warehouse environment with new enterprise data warehouse platforms, including new data warehouse appliances, as well as the latest Aprimo Relationship Manager application from Aprimo, a Teradata company.

The upgraded platforms and software tools were implemented while realizing a 30% reduction in total cost of ownership. Hallmark also added utilities for backup and recovery, as well as Teradata Viewpoint and Professional Services support.

Bentonville, Ark. -- Sam's Club will offer  a limited 15-week membership for $15.  

The seasonal membership is available for purchase during regular club hours for a limited time between Oct. 4 and 10.

NAPERVILLE, Ill. — OfficeMax announced that it is engaging the services of Google Wallet to make it easier for customers to pay, redeem coupons and reap the benefits of its loyalty program by using their mobile phones. The new service is available through new checkout terminals located at more than 100 OfficeMax stores.