Does Anyone See The Point of FreshCo?
What I fail to understand is what is supposed to bring me to FreshCo? What am I getting there that I can't get anywhere else? No Frills is the dominant retailer in the hard discount format. If I'm already shopping at No Frills (which already covers Western Canada pretty well) why would I switch? And if I'm a Safeway shopper at a store that is becoming FreshCo, why would I stay a customer of that location when all the reasons I shopped there are now removed?
What I really don't understand is FreshCo's refusal to participate in Air Miles. I understand it in terms of cost to the retailer, but in the absence of being able to earn or redeem AM at FreshCo, why would I go there as a shopper? I can earn PC Optimum points at No Frills (on featured products) as well as redeem them, so that's a factor in helping me to choose that store. So why would anyone choose FreshCo?
I'm also puzzled by the corporate strategy: many of the Safeways being converted are near Save-on-Foods. This means that anyone who still wants a store with an on-site bakery, deli, etc. is simply going to go down the street to Save-on when FreshCo takes over.