ACNielsen Study Finds 70 Percent of all U.S. Households Participate in Frequent Shopper Programs; Households Belonging to Multiple Programs on the Rise.

Business Editors

SCHAUMBURG, Ill.--(BUSINESS WIRE)--April 17, 2000

The number of U.S. households participating in frequent shopper programs (FSPs) increased for the fourth consecutive year, reaching 70 percent in 1999-- double the number of households that participated in 1996, according to the Fourth Annual Frequent Shopper Survey released today by ACNielsen U.S., an operating unit of ACNielsen Corporation (NYSE:ART).

As the number of retailers offering FSPs continues to grow, so does the number of households participating in more than one program.

"Fifty-nine percent of households that belong to a frequent shopper program now belong to two or more - up from 57 percent in 1998," said Jane Perrin, managing director, ACNielsen global services. "This is putting pressure on retailers to further differentiate themselves from their competition. The retailers who are doing the best job with their frequent shopper information are those that are using it to proactively foster loyalty among their best customers."

The market with the highest percentage of households belonging to a FSP is Chicago, with 97 percent enrolled. Other top markets include Phoenix (96 percent), Los Angeles (92 percent), Charlotte (92 percent) and Denver (91 percent). Buffalo/Rochester, N.Y. -- where Tops introduced a new program -- experienced the highest growth rate in 1999 (+16 percentage points to 89 percent). The nation's largest city, New York, has a participation rate of 73% -- the same rate that it had in 1998.

Even with 70 percent of all households enrolled in frequent shopper programs, the study indicates that there is still room for growth in certain markets. One-third of all respondents stated that there is a grocery store they would shop in more often if it offered a FSP, and the most common reason for not belonging to a program is that the store where non-members shop simply does not offer one.

Markets with the lowest FSP enrollment rates include Miami (6 percent), Columbus (14 percent), St. Louis (17 percent), San Antonio (20 percent) and Houston (51 percent).

Among other key findings:

- Saving money is the number one reason why people join and

participate in a FSP

- Eighty-three percent of FSP members use their card every time

they shop

- Demographically, FSP member households tend to be slightly

larger than non-member households, more affluent, better

educated and employed in professional/white collar professions

Nearly 38,000 households in the ACNielsen Homescan(TM)consumer panel participated in the study which was conducted in October and November of 1999.

ACNielsen, with 1999 revenue of $1.5 billion, is the world's leading market research firm, offering measurement and analysis of marketplace dynamics, consumer attitudes and behavior, and new and traditional media in more than 100 countries. Clients include leading consumer product manufacturers, retailers and service firms, media and entertainment companies and the Internet community.

Note to Editors: Look for this press release and other ACNielsen news on the Internet at http://acnielsen.com.