Associated Food Stores Introduces Tiered Incentive Discounts for Retailers
Associated Food Stores (AFS) has introduced its Tiered Incentive Discount (TID) program that offers increasing discounts based on order quantities, helping retailers move beyond traditional pallet-only deals.
“TIDs were created with retailers’ needs in mind,” said Lon Herget, director of center store category management at AFS. “This new allowance unlocks numerous opportunities for stores, enabling better cost efficiency, greater product customization and improved accessibility. We’re thrilled to leverage advanced warehouse technology to elevate display and merchandising capabilities, creating a more impactful in-store experience.”
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TIDs apply to select product groups during pre-commit events. Retailers can receive tiered discounts by purchasing specified case quantities on a single order or ship date. According to AFS, the more they buy, the greater the savings. The example below shows how TID tiers could appear:
- Tier 1: Purchase 10 cases and receive $2 off per case
- Tier 2: Purchase 15 cases and receive $3 off per case
- Tier 3: Purchase 20 cases and receive $4 off per case
If a retailer orders 30 cases in a single transaction, the Tier 3 discount will still apply, meaning they’ll get $4 off per case.
TIDs also feature the flexibility to mix and match items. Retailers aren't restricted to specific quantities of each item within a deal. If the total tier quantity is met, retailers can order any combination of eligible products.
In addition, TIDs provide discounts on top of existing traditional allowances, such as off invoice, temporary price reductions and performance-based allowances.
By leveraging these tiered discounts, AFS said that grocery stores can achieve better cost efficiency and offer a more customized product assortment to customers.
For wholesale teams, these deals help optimize inventory management and drive larger, more efficient orders while offering savings to retailers.
Serving nearly 450 retailers across the Intermountain West, Salt Lake City-based AFS is a grocery retailer cooperative supplying independently owned retail supermarkets throughout the western United States. It is No. 73 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
