Kroger Revamps Rewards Program to Add Flexibility
The Kroger Co. has expanded its rewards program to let members choose whether they redeem points in stores, online or at fuel pumps, the company said Thursday. The move is aimed at making the shopping experience more flexible.
Kroger's "Fuel Points" are now simply "Points," the company said. Rewards program members can redeem their points to get dollars off groceries and fuel discounts.
"We're excited to help customers stretch their budgets and give more choices in how they use the rewards they earn shopping with us," commented Megan Shaffer, Kroger's group VP of customer growth and strategy. "Whether they're saving up to $35 on their next fill-up or taking dollars off their grocery bill, customers can now choose the savings that matter most to them."
Under Kroger's rewards program, members can get $1 off groceries for every 100 points redeemed, up to $10 per day, the company said. They can also save 10 cents per gallon on gas for every 100 points, up to $1 per gallon. Members can redeem points on Kroger's website or mobile app.
Kroger's rewards program shift comes on the heels of the company's first-quarter earnings, when Kroger reported adjusted e-commerce sales growth of 19%. During the company's earnings call, however, CEO Gregory Foran pointed to Kroger's position on price as an area for improvement, making the expansion of its rewards program especially timely.
Also on Thursday, Kroger announced its board of directors raised the quarterly dividend by 11%, marking an increase from $1.40 to $1.56 per year. The next quarterly dividend of 39 cents per share will be paid on Sept. 1, the company said.
Cincinnati-based Kroger employs 400,000-plus associates who serve more than 11 million customers daily through an e-commerce and store experience under a variety of banner names.
This article was originally published on P2PI sibling brand Progressive Grocer.
