A new discount structure from Associated Food Stores is helping retailers unlock deeper savings and improve merchandising flexibility and despite a few early challenges, the program is already delivering results.
The Tiered Incentive Discount (TID) program offers escalating discounts based on order quantities and allows stores to go beyond traditional pallet-only deals. Designed to benefit stores of all sizes, TIDs are reshaping the way retailers build assortments and take advantage of pre-commit opportunities.
While the concept shows clear promise, fine-tuning has been part of the process. Initial testing during the Fall Mini Buy show offered limited insight, prompting further tests in April using FoodShow deals shipped early to select stores. The expanded testing revealed more opportunities for improvement and was essential to improving functionality.
As the first major wave of FoodShow shipments began, AFS received positive feedback from retailers reporting that TIDs were invoiced correctly in most cases. One early glitch in the mix-and-match calculation led to inflated deal amounts for some stores, but a corrective fix was quickly implemented, and few issues are now being reported.
“We continue to monitor and refine the process,” said Lon Herget, director of center store category management at AFS. “Our teams are conducting spot checks on TID items to ensure accuracy and consistency in invoicing.”
As of early June, AFS has shipped 513 of the 1,539 FoodShow items with a TID deal which is about 33 percent of the total.
TIDs are applied to specific products during pre-commit events and use up to three-tiered quantity thresholds. The more a retailer orders on a single transaction or ship date, the larger the discount is per-case. For example, 10 cases may yield a $2 discount per case, while 20 cases could earn $4 off per case. The highest tier discount still applies even if retailers order beyond the specified threshold.
A standout feature of the program is its mix-and-match capability. Retailers can combine different eligible items to meet tier thresholds, giving them added flexibility when building displays or managing shelf sets.
TIDs are layered on top of traditional discounts such as Off Invoice (OI), Temporary Price Reductions (TPR), and Performance-Based Allowances (PBA). The additional savings are clearly identified in Promo Events and are exclusive to select pre-commit opportunities.
“TIDs were created with retailers’ needs in mind,” Lon said. “This new allowance unlocks numerous opportunities for stores, enabling better cost efficiency, greater product customization and improved accessibility. We’re excited to leverage advanced warehouse technology to support enhanced display and merchandising, helping stores create a more impactful in-store experience.”
The implementation of TIDs reflects a collaborative effort across AFS teams, including retail operations, procurement, distribution and more. Wholesale benefits from more efficient ordering patterns and inventory planning, while retailers gain access to expanded savings opportunities.
Retailers are encouraged to explore current TID offerings in PromoEvents or connect with their retail account managers for guidance.