It seems like Kroger is adding a little fuel to the summer fire.
The grocery giant has announced a warm-weather promotion that lets shoppers save up to $35 on their next gas fill-up, turning trips to the supermarket into rewards and fuel-saving hacks.
The summer series, which runs Fridays from now through July 24, is designed to help customers stretch their budgets and save more on gas while shopping for everyday essentials by earning 4X fuel rewards.
Some customers were quick to point out some similarities between Kroger’s new fuel strategy and that of Costco, which, despite lower fuel prices, limits pumps to executive and gold membership tiers that come with higher price tags than regular Costco memberships, according to The Street.
“At Kroger, we’re focused on helping customers maximize value every time they shop,” said Mary Ellen Adcock, Kroger executive vice president and chief merchant and marketing officer, in a press release. “With Fuel Points, customers can earn rewards on the groceries they already buy,” adding that this will help families stick to their budget at a time when many families are feeling the pressure of every added cost.
A recent AAA survey found that 75% of Americans felt the national average of $4 per gallon was a tipping point for costs. Of the respondents, over half would change their driving habits or lifestyle if prices continued to increase.
Despite gas prices rising and many West Coast states already at $5 per gallon, much of the data suggests it isn’t affecting summer travel, with most Americans still planning a vacation or a great American road trip.
While Kroger has a massive size advantage over Costco, operating more than 1,700 gas stations compared to the big-box store’s 737, according to company reports, RTMNexus CEO Dominick Miserandino thinks that Costco’s fuel-saving strategies will outperform Kroger’s, in part because the grocery chain has made the process too many steps.
“Costco wins because its value proposition is completely frictionless: you show your card, and you get the lowest price in town immediately,” he predicted. “Kroger’s model requires digital coupon clipping, tracking specific calendar windows like ‘4X Fridays,’ and monitoring point balances. In a tight economy, convenience-fatigued consumers eventually reject complex loyalty gamification,” he said.
And consumers seemed to agree with this sentiment.
“U have to clip digital coupons and take advantage of 4x points per dollar spent on items and redeem points for gas … and save up to 35 per purchase … lots of hassle … hard pass … ur welcome,” wrote one user on Facebook.
Some even questioned the Friday-only rewards model and compared it negatively to other stores where items can be out of stock.
“They already do this every Friday so what’s different? I hate shopping at Fred Meyer on Friday because everything I want is out of stock so it’s pointless,” said another.
While some disputed the price, even alleging that Kroger increases its gas costs so that, with the savings, it reaches equilibrium, others judged solely on quality.
“Costco has top-tier gas, Kroger does not, you never know the quality of fuel at Kroger. With smaller turbo engines becoming the norm, that will hurt your motor much quicker,” said another unimpressed consumer.
Love it or hate it, Kroger’s latest promotion underscores a growing retail trend: using the gas pump to drive grocery sales at a time when Americans are looking for any way to cut the cost of getting from point A to point B.
For cash-strapped consumers, every cent counts. The real question is whether shoppers are willing to jump through a few extra hoops to save at the pump.
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