The news: Albertsons added a travel perk to its loyalty program, joining retailers that are extending membership benefits beyond core offerings in a bid to boost sign-ups and engagement.

• The new Expedia-powered feature, U Travel, gives customers access to exclusive deals on flights, hotels, car rentals, and vacation packages.
• Members of Albertsons’ free loyalty program receive up to 5% cashback to use for grocery purchases across the retailer’s banners, while paid FreshPass members earn up to double the rewards.

The opportunity: The addition of the travel booking function gives Albertsons an opportunity to stand out among grocers—as well as to boost its retail media business.

• The ability to score cash back on travel purchases that converts into grocery savings could be a strong lure for cost-conscious shoppers, especially since the perk is free.
• More loyalty program sign-ups offer opportunities to collect valuable customer data, which could be used to make campaigns run through Albertsons Media Collective more targeted and effective.
• The booking platform also broadens the range of brands that could advertise on Albertsons, making the retailer a more attractive destination for nonendemic dollars.

Our take: Loyalty programs increasingly serve dual functions for retailers. Not only do they help reward and retain customers, but they are also an invaluable source of consumer data that can power companies’ retail media strategies.

By enhancing the value of its loyalty program—and extending those perks to free members—Albertsons can make inroads with both customers and advertisers.