Catalina Marketing Offers Service Combating Channel Erosion in Supermarket Industry

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Marketing services company Catalina Marketing Corp. has introduced a system to help supermarket retailers regain lost share from retailers in other categories.


"As Wal-Mart opens more stores, and pharmacies and mass merchant stores merchandise a lot more food, cleaning products and paper than they ever did before, our food retailers are feeling the squeeze," said Sue Klug, president of St. Petersburg, FL-based Catalina Marketing Services, retail and direct mail. CMS is a division of Catalina Marketing Corp.


Supermarket retailers would use Catalina's service to create individualized communication efforts designed to recapture dollars from eroding categories.


The new system works with Catalina's flagship program, the Catalina Marketing Network, which tracks transactions and allow supermarkets to issue communication based on a customer's order or what that customer has historically bought.


The Catalina Marketing Network is installed in 16,000 supermarkets in the United States, or 70 percent of the supermarket volume. More than half of these stores use the system with historical data, including in combination with loyalty or frequent-shopper programs.


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