Loyalty programs, when they work well, offer meaningful rewards in exchange for spending at a specific retailer or restaurant. For the program to succeed, rewards have to be attainable while also substantial enough to feel like you’ve earned something.
Starbucks, for example, does this incredibly well, as 100 points gets members a free basic coffee or tea, while 200 points earns them pretty much any specialty drink on the menu. Points accrue at a rate of between 1 and 1.7 per $1 spent, depending on your loyalty level. Even at the lowest level, frequent visitors earn free beverages relatively quickly.
Kroger followed a similar model with its Rewards program, but until June 24, any points earned could only be redeemed for discounts on gas. That’s something the grocery chain changed without making a formal announcement.
Kroger now lets you redeem points for groceries
Until the change, Kroger’s rewards program was very simple. Every 1,000 points earned gave you $1 off per gallon, up to 35 gallons per fillup, according to the company’s website.
Now, when you visit the Rewards section of the Kroger website, you see some new language.
“Use your points your way — on groceries or fuel, you choose!” the site says.
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It also explains the new redemption option.
“NEW! Dollars off groceries. Redeem points for savings off your next purchase — up to 1,000 points per day for $10 off,” it shared.
Local news station CBS WLKY first noticed the change and confirmed it with the grocery chain on June 24.
“WLKY reached out to Kroger’s Louisville division for any other clarifying information. They expect to release more details on Thursday (June 25),” the news website shared.
Is this a good deal for shoppers?
In most cases, it will likely make more sense to redeem your Kroger Rewards points toward gas.
“Most passenger cars in the United States carry between 12 and 16 gallons of fuel. Larger SUVs often carry between 16 and 21 gallons, while full-size trucks can carry over 30 gallons in some cases,” according to Edmunds.
If you need more than 10 gallons of gas, your 1,000 point redemption brings you more than $10 back. But for those with smaller cars, or those who don’t drive at all, the change in Kroger Rewards gives them a way to cash in.
RTM Nexus CEO Dominick Miserandino likes that the change pushes Kroger customers back into its stores rather than to its gas stations.
“Actually, I think it’s a great move because the $10 off keeps people within the four walls of the store so that they keep on going back and they keep on shopping with a little bit of a discount coming back at them,” he told TheStreet.
How do you earn Kroger points?
Kroger has a fairly simple system for earning points.
- Groceries: Earn 1 point for every $1 spent on eligible groceries.
- Gift Cards: Earn 2 points for every $1 spent on most gift cards.
- Prescriptions: Earn 25 points for non-federally funded prescriptions, and 1 point per $1 of out-of-pocket cost for federally funded prescriptions.
Kroger’s pro tips to maximize your points:
- Surveys: Earn 50 bonus points by completing the customer feedback survey on your store receipt using the Kroger Customer Satisfaction Survey portal.
- Clip digital coupons: Check the Kroger App for exclusive bonus multipliers (e.g., 4x points on gift cards or specific brand items).
- Online shopping: Points are automatically credited to your account within 24 hours when you use Kroger Pickup or Delivery.
Source: Kroger
Kroger also offers an Amazon Prime-style annual membership to doubles your points per dollar spent.
It costs $99 per year or $12.99 per month for Boost, which comes with free same-day shipping and a year of Disney+, Hulu, or ESPN (all with ads). Boost Essential, along with the double points, adds half a year of one of those streaming services and free next-day delivery for $69 a year or $8.99 a month.
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Kroger’s change follows Albertsons
Even before making this change, Kroger reported positive results from its Rewards program.
“During the quarter, we expanded fuel reward promotions, helping customers save at the pump in an environment where value matters more than ever, while driving incremental traffic to our stores. As a result, fuel reward redemptions were up 10% compared to last year,” CFO David John Kennerley said during the company’s first-quarter earnings call.
Kroger’s move comes about two years after Albertsons made a similar change to its for U loyalty program.
“A new automatic cash off option allows members to opt-in and automatically convert points into cash off savings at checkout for a more seamless savings experience. Customers can still enjoy all the other points redemption options they love such as discounts on groceries and gas,” the chain shared in a press release.
The change was part of a bigger overhaul of the program.
“The updates to Albertsons for U… are subtle but meaningful. Instead of automatically converting accumulated points into grocery or gas rewards, users will accrue points that they can then redeem for rewards on their own,” Grocery Dive wrote at the time.
Loyalty programs are big business for both Kroger and Albertsons. Kroger does not generally reports its Rewards membership numbers, but the program drives most sales at the chain.
“For years, Kroger has made a concerted effort to drive people to its loyalty program and more than 95% of customer transactions are tied to a Kroger loyalty card,” according to Consumer Reports.
Albertsons shared for U membership numbers during its fourth-quarter earnings call.
“Membership grew 12% to more than 51 million members, with more frequent transactions, easier reward redemption and higher spending among engaged households,” the company shared.
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