In an attempt to lure more shoppers to its stores in Indiana, Kroger Co. is offering price breaks on gasoline to their loyal customers. Kroger launched a rewards program that lets shoppers who load up on groceries earn up to $35 a month in free gas at Kroger fuel centers. The revised program, which applies to all Indiana stores in Kroger's Central Division, is in 10-cent increments. For each dollar spent inside Kroger, customers receive one point. Customers who earn 300 points would get 30 cents off per gallon, those who earn 500 points, 50 cents off -- and so on. Earn 1,000 points in a month and get $1 off per gallon, up to 35 gallons.
Kroger is hoping the program will not only help it stand out in one of the most saturated grocery markets in the nation, but also will break through the crowded field of gasoline savings programs. Kroger acknowledges that the program will cause it to lose money on gasoline but is hoping it will more than make it up in increased grocery sales. This program could provide Kroger a differentiated strategic advantage over other grocers.
I heard that they run a similar program in Kentucky and they have partnered with Shell gas stations. Use to you could earn up to 10 cents off per gallon but now it is honored at Shell as well.
ReplyDeleteYou are exactly correct Jennifer. The program started in February in select locations such as Cincinnati, Dayton, Knoxville, and Nashaville. Kroger/Shell have continued to expand the partnership throughout 2010.
ReplyDeleteMy mom mentioned something about a free tank of gas she accumulated at our local Kroger. I'm not sure if it was a special promo or what. If our store offered more variety, I would consider switching over for the gas savings, coupons, and other promos.
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