Albert Heijn (or AH) is arguably the largest retail chain in Europe, owning supermarkets, convenience stores, and online shopping services in food and other goods.

AH prides itself on establishing the first modern supermarkets. Founded in 1887 in Oostzaan, the Netherlands, Albert Heijn grew from a humble grocery store to a chain of supermarkets. Its first supermarket was established in 1952 and, over the decades, AH has been the shopping destination of choice for the majority of the people living in the Netherlands and nearby countries. The chain comprises more than 850 stores, including more than 200 franchisees.

It is now expanding to Belgium and other European nations. According to a plan published in late 2011, 150 new Albert Heijn stores would be opened across Europe over a five-year period. The first such store was opened in Aachen, Germany, in September 2012.

AH is known for being an early adopter of information technology and has been one of the first supermarkets to take on a loyalty-card program. Customers can avail of a discount with a card called ‘Bonuskaart’ in Dutch. It is issued to them after their personal information is entered into a database.

This provides AH with a mine of information about its customers. It utilizes this information to expand its business and push sales.

REQUIRED

a. What kind of information do you think AH gathers?

b. How do you think the AH has motivated its customers to sign up for the bonus card program?

c. What can the AH accomplish with the data it collects? Think in terms of strategy and competitive advantage.

d. What could be some of the disadvantages of the card program?