Technology/Services

Kroger Using Fuel to Compete

New incentives program will help grocer take on Meijer, Wal-Mart
DETROIT -- Michigan's largest grocer is introducing an incentives program to boost its cut of the state's fuel sales, reported The Detroit News. Cincinnati-based Kroger Co. rolled out a program Monday that helps customers save at the pump. The program will help Kroger compete against its two biggest grocery contenders in the state, Meijer Inc. and Wal-Mart Stores Inc.

Kroger shoppers receive one point for every dollar spent at Kroger fuel stations; 1,000 points would mean $1 off per gallon for each fillup. Customers can also take 10 cents off each gallon per fillup [image-nocss] at one of Michigan's more than 150 Shell gas stations.

(Click here for previous CSP Daily News coverage.)

Kroger, which has 30 fuel stations in Michigan, partnered with Shell to increase its presence in the local fuel market, said the report.

"It adds value to the shopping experience," Kroger spokesperson Dale Hollandsworth told the newspaper.

The program kicked off in February in five test markets: Cincinnati and Dayton, Ohio; Nashville and Knoxville, Tenn.; and San Diego.

Kroger and Shell declined to share the program's results, but Shell's Michigan area manager, Dave Gordon, told the paper that it was "well received."

Meijer, with approximately 100 gas stations in Michigan, offers five cents off each gallon when it is paid for with a Meijer credit card, spokesperson Frank Guglielmi told the paper. The savings program does not require a purchase at a Meijer store.

Wal-Mart has more than 15 gas station in Michigan, but increasing fuel sales is not a primary focus for the retailer, spokesperson Lindsay Huddleston said. "We're just committed to everyday low prices," she told the Detroit News.

In addition to grocery purchases, Kroger customers can get 50 points per pharmacy prescription and double the value of gift cards purchased for participating retailers, the report added. Kroger is awarding quadruple points on gift cards to celebrate the reward program's debut.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Opportunities Abound With Limited-Time Offers

For success, complement existing menu offerings, consider product availability and trends, and more, experts say

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

Trending

More from our partners