Safeway Kills Grocery Miles Program with United Airlines

Yesterday I went to the grocery store to pick up a few things. As usual, when I’m done with my transaction I look at the receipt to see how much closer I am to receiving my United Airlines Mileage Plus miles. With the Grocery Miles program, for every $250 you spend at Safeway (as well as Dominick’s and Vons), you get 125 miles on United.

This time, there was a little note on the receipt saying “Our Airline Rewards Program ended 2/28/10. United Mileage Plus miles are no longer earned on purchases as of 3/1/10.” I was a little taken aback as I had no warning that this program was ending. In all fairness, I’m sure they sent out a letter to notify me of this, but the address listed on my Safeway Club account is an old address.

Curious, I asked the checker why the program ended and she didn’t know. When I got home, I called United to see if they had any information and they said that Safeway simply decided to end the program. So I went to Safeway’s web site and found this juicy bit of information:

Q. Why is the Airline Mileage Rewards program ending?
A. We listen to our customers and understand that in the current economic climate there’s an overwhelming need for lower prices. To fulfill that low price need while also providing the high-quality products our customers expect, we have decided to refocus the value previously offered through our Airlines Partnership into lower prices on the items all customers need.

What does that even mean? It reads like so much corporate doublespeak. The most confounding part is the “refocus the value” bit. Products are not any cheaper for me because I’m enrolled in the Grocery Miles program. What’s more, I don’t see how this is so taxing on Safeway’s resources. Maybe I’m wrong, but it seems like the program is completely automated: you buy products, the computer keeps a tally of your purchases, and when you reach $250 it lets United know to credit 125 miles to your account. How much more could the program really entail? It seems like a win-win for both United and Safeway.

In addition, I can’t fathom hoards of angry customers writing and calling Safeway demanding that they end the Grocery Miles program as it is diverting resources away from cutting prices. I think there is something else going on here. I’m going to write Safeway and see if they respond – check back for a follow-up.

In the meantime, in light of the program cancellation I’ve decided to “refocus the value” of shopping at Safeway and patronize another store.

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