Whole Foods (WFM) Making Digital Marketing Push - RBC

Overnight, Whole Foods (NASDAQ: WFM) began pushing out digital coupons through its rewards program app in test markets (Philadelphia and Southern New Jersey), according to RBC Capital analyst William Kirk.

The coupons include $5 off any $15 purchase of Fresh Produce, as well as other dairy and grocery items.

Kirk said it is noteworthy that Whole Foods is making its digital coupons and rewards program more user-friendly by pre-loading your account with the coupons.

"Customers could take advantage of the savings by showing the Whole Foods Rewards app on their mobile devices or present their physical rewards card at checkout,"the analyst said. "Whole Foods can now also look up rewards membership by searching the associated phone numbers for customers who do not have the physical cards. We are encouraged by the progress and believe it’s the first step toward a fully-integrated national rollout."

The analyst said following Kroger’s recent outperformance and successful rewards program, food retailers are increasing resources allocated to loyalty program and digital marketing. He said efforts would provide them valuable customer data for more effective marketing in the highly competitive market, and ultimately help drive comparable store sales growth.

The firm reiterated an Outperform rating and price target of $37 on Whole Foods.

For an analyst ratings summary and ratings history on Whole Foods Market click here. For more ratings news on Whole Foods Market click here.

Shares of Whole Foods Market closed at $28.84 yesterday.

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