Technology/Services

Gas & Groceries A-Go-Go

High fuel prices spark new spate of discount programs

CINCINNATI -- As the costs of both food and fuel rise, more supermarkets such as Kroger, BI-LO, Supervalu, Meijer and others are launching or enhancing their gasoline discount programs. Customers throughout The Kroger Co.'s family of stores can now accumulate and redeem fuel discounts they earn by shopping at Kroger-owned stores at participating gas stations the retailer operates across the country.

The fuel discount programs are available and transferable at Kroger stores nationwide under the Kroger, Baker's, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Gerbes, Hilander, Jay [image-nocss] C, King Soopers, Owen's, Pay Less, QFC, Ralphs, Scott's and Smith's banners. The expanded program is not available in some areas including Alabama, Michigan and the Columbus, Ohio, metropolitan area.

Most of the fuel discount programs offered by Kroger and its family of stores reward customers with a minimum of 10 cents off per gallon of gas for every $100 they spend in a store. Customers can take advantage of fuel discount programs offered at Kroger and its banner stores by using their shopper cards. Shoppers who use Kroger's 1-2-3 REWARDS MasterCard can earn discounts up to 15 cents off per gallon of gas in participating markets.

Cincinnati-based Kroger has 2,486 supermarkets and multi-department stores in 31 states under two-dozen banners. It also has 782 convenience stores and 720 supermarket fuel centers.

As reported in CSP Daily News last week, Grand Rapids, Mich.-based Meijer announced that beginning June 1, it will be cutting prices 10 cents per gallon for customers using their Meijer consumer credit cards when purchasing fuel at Meijer gas stations. The program, which will run through Labor Day at all 165 Meijer gas stations, includes all grades of gasoline and E85, as well as diesel and biodiesel.

Customers will receive the 10-cents-per-gallon discount when purchasing fuel with their Meijer consumer credit card. The savings are immediately reflected on the gasoline dispenser total. This new program replaces the 5-cent-per-gallon discount Meijer customers have previously received when using their Meijer consumer credit card. Drivers can pay at the pump or pay in-station with their Meijer consumer credit card to realize the savings. There is no minimum fuel purchase requirement and the discount is valid at all Meijer stations and C-Stops. The discount applies to both the Meijer store card and the Meijer Platinum MasterCard.

Meijer operates 181 supercenters throughout Michigan, Indiana, Illinois, Ohio and Kentucky.

Earlier this month, BI-LO launched a program to turn grocery purchases into free fuel. Customers can earn gasoline tokens when they make purchases using their BI-LO BONUSCARD. When they earn eight tokens, they can redeem them at the customer service center of any local BI-LO store for a $25 BP or Shell gift card.

When customers spend $50 or more in a single visit, they earn a token. They can earn tokens when they purchase any of the specially marked "Free Gas" items. Customers can earn five tokens by transferring and filling a prescription at the BI-LO pharmacy. They can also earn a token by buying $50 or more in eligible gift cards from the BI-LO Gift Card Center. There are no limits on the amount of rewards a customer can earn in this program.

Headquartered in Mauldin, S.C., BI-LO operates 220 supermarkets in the Carolinas, Georgia and Tennessee. All 31 BI-LO stores in the Chattanooga area will be participating in the Free Gas program, which begins May 7 and ends July 29, 2008 (tokens must be redeemed by Aug. 5, 2008).

In April, Cub Foods and Holiday Stationstores extended their gasoline coupon program that offers shoppers 1 cent off per gallon of fuel for every $10 spent at Cub's 56 Twin Cities discount food stores, reported Twin Cities Finance & Commerce. The cross-promotion began in June 2007 as a vacation season promotion, and was extended in September, when it started allowing people who purchased gasoline at Holiday stations to combine three Cub discount coupons per purchase.

When Cub shoppers receive their shopping receipts, they get a separate coupon that gets them 1 cent per gallon of gasoline for every $10 spent at Cub if they fuel up at Holiday, owned by Bloomington, Minn.-based Holiday Cos.

Noticeable parts of the promotion are discount signs and coupons specifying Holiday gas at Cub Foods, while signs at Holiday, including the red "Cub" logo on each pump handle, remind customers of the tie-in, said the report.

Cub's owner, Eden Prairie-based Supervalu Inc., is trying food-and-fuel cross-promotions with other grocery chains it owns, the report added. Supervalu-owned Shop 'n Save also is experimenting with the discount gasoline concept in St. Louis, where two grocery stores with adjacent Shop 'n Save-branded stations started offering discounts earlier this year. Shop 'n Save offered customers spending $100 coupons worth 9 cents off as many as 20 gallons of gasoline. Customers spending between $50 and $99.99 received coupons for 6-cent-per-gallon discounts, while those spending $10 to $49.99 got 3-cent coupons.

And in January, also as reported in CSP Daily News, Portsmouth, N.H.-based Irving Oil Corp. launched a gasoline discount promotion with Supervalu's Shaw's Supermarkets. There are 57 Shaw's Supermarkets and more than 140 Irving locations participating in the program throughout Maine and New Hampshire.

Customers shop at participating Shaw's stores with their Shaw's Rewards Card. Gasoline coupons valued at 10 cents per gallon, redeemable at participating Irving locations for up to 20 gallons of fuel, are issued after a minimum purchase. Savings grow up to 60 cents per gallon on a $300 purchase.

Customers present their Shaw's Rewards Card and gasoline coupons at Irving to receive the discounts. Customers can combine the discount coupons up to the price per gallon of gasoline, and some who have collected enough coupons in the pilot program have received a full tank of fuel for free, the company said.

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