You know all that personal information that you give them (Kings, Safeway, etc.) when you get one of their member cards? Why do you think they need that just to give you discounts on crap?
They don't. Its for advertising. They track the things you purchase and send you coupons and such for similar items. Convenient, maybe, but the point is YES, they do have that information on you, and most of the time you willingly give it to them.
Unless that wasn't you being argumentative. In which case yes you're right.
I figured you'd mention discount cards. This is entirely different though. This is closer to car manufacturers tracking every single place that you drive your vehicle to and how you spend your money at each destination.