Kroger understands that its customers are hurting.
“We know that fuel over $4 has an impact on consumer spend,” CEO Gregory Foran said during the chain’s second-quarter earnings call.
The new CEO understands that while his company can’t be the cheapest, it can still offer value.
“Our goal remains simple. We are building America’s favorite grocer. Customers want value, quality, convenience, and a shopping experience they can trust. When we deliver those things consistently, we earn bigger baskets, and more trips,” he said.
Now, to help deliver more value, Kroger has released a new credit card tied directly to its rewards program.
Kroger Plus offers free savings
Kroger Rewards offers members a free way to earn discounts on gas and groceries.
Members get 1 point per $1 spent in store or on pickup and delivery orders, and 2 points per $1 spent on gift cards.
The program is designed for regular redemptions as points expire fairly quickly.
Points expire on the last day of the month after you earn them. Points earned in September are gone after Oct. 31.
How points can be redeemed changed in June.
- Gas: Every 100 points takes 10 cents off a gallon, up to $1 a gallon on as many as 35 gallons per fill-up. You can use them at Kroger fuel centers and, in some regions, at partner stations like Shell and BP.
- Groceries: New this year, every 100 points is worth $1 off your order, up to $10 a day. You have to choose it in the app or on Kroger.com before checkout.
- Why it matters: Both options work out to the same value: 1,000 points is either $10 off groceries or $1 a gallon off a 10-gallon fill-up. Gas is the better deal once you’re filling up more than 10 gallons, since the discount applies to up to 35 gallons.
The new credit card, however, solves the biggest problem in the rewards program as points earned by cardholders never expire.
Kroger launches a new rewards card
The new Kroger Rewards World Elite Mastercard “gives shoppers a faster way to earn more Points through everyday purchases, while maintaining flexibility to redeem rewards for dollars off groceries and fuel across Kroger Family of Stores locations and participating fuel centers,” according to a press release.
Unlike regular Rewards points, points earned with the credit card never expire.
The company shared a table showing how cardholders can earn points:
- Up to 5X Points on purchases made through Kroger.com and the Kroger app
- 4X Points at Kroger Family of Stores participating fuel pumps
- Up to 3X Points on purchases made in-store at the Kroger Family of Stores
- 2X Points on dining, utilities, and travel
- 1X Points on all other eligible purchases made with the card, anywhere Mastercard is accepted
Additional benefits include a $100 Welcome Bonus, a $10 annual Birthday Reward, and a complimentary Boost Essential membership, which includes free next-day delivery with minimum purchase.
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“Your rewards can be redeemed while you’re in the flow of checkout inside the app or while you’re at the pump,” Megan Shaffer, group VP of customer growth and strategy at Kroger, told Progressive Grocer. “You can load it onto your loyalty card to use up to $50 off per day in our stores off your grocery bill, depending on how many points you have available.”
Non-cardholders, as mentioned above, can only redeem $10 per-day in stores.
Kroger launched its new Mastercard after ending its credit card partnership with U.S. Bank earlier this year. The previous version of the Kroger Rewards World Elite Mastercard was discontinued, and U.S. Bank transitioned Kroger cardholders to the U.S. Bank Smartly Visa Signature Card, which is not affiliated with the grocery chain.
Here’s how the new card helps with gas
Gas rewards changed with the switch between cards.
Old Kroger’s old card:
- Base perk: 5 cents off per gallon at Kroger fuel centers
- Top tier: 25 cents off per gallon for cardholders who spent $6,000 a year
- Catch: You had to redeem at least 100 fuel points to get the added discount
- How it paid: Instant, at the pump, every fill-up
Kroger’s new rewards card
- Earning: 4X points at Kroger Family of Stores fuel pumps
- Redemption: Every 100 points takes 10 cents off a gallon, up to $1 a gallon on up to 35 gallons
- Expiration: Card points never expire, unlike regular Kroger points
- Extra: Points from dining, utilities, travel, and other spending also go toward gas
- How it pays: Delayed, since you earn now and redeem later
What that means on a 10-gallon fill at $4.48 per gallon ($44.80)
- Old base card: 50 cents saved
- Old top tier: $2.50 saved
- New card: About 180 points earned, worth about $1.80 when redeemed on a 10-gallon fill
Kroger wants to drive visits
RTM Nexus CEO Dominick Miserandino thinks that Kroger has offered a card which fits its broader goals.
“Kroger doesn’t need customers to buy more groceries. It needs them to have more reasons to keep coming back to Kroger. If paying the electric bill, eating dinner out or booking a trip eventually saves you money on groceries, Kroger has inserted itself into purchases that have nothing to do with the grocery store,” he told TheStreet.
UpgradedPoints likes the card for “frequent Kroger shoppers,” but not for everyone else.
“The card is much less compelling as an everyday spending or all-purpose rewards card, as its highest earning rates are tied to Kroger spending, while everyday purchases outside specified categories earn a meager 1 point per $1 spent,” the website shared.
Doctor of Credit was lukewarm on the card.
“It’s a shame that the card doesn’t earn 5x on all Kroger purchases though. Personally don’t see the value here with only a $100 sign up bonus, but if that increases in [the] future it might be worth it,” the site posted.
Reviewers also flagged that you have to spend $750 outside Kroger within 90 days to earn the bonus, and the $100 can only go toward groceries.
The Kroger Rewards World Elite Mastercard is primarily designed for shoppers who regularly buy groceries, fuel, or other items from Kroger’s various chains. Its higher earning rates are concentrated around Kroger purchases, while other eligible spending earns 1 point per dollar unless it falls into the card’s bonus categories.
How do I get the Kroger Rewards World Elite Mastercard
Shoppers can apply for the card in the Kroger app or at Kroger.com. The card is issued by First Bank & Trust and operated by Imprint Payments, not U.S. Bank.
Former Kroger cardholders who were moved to the Smartly Visa would need to apply for it as a new account. It carries no annual fee, and cardholders can manage their rewards directly in the Kroger app or website, where the points link to their existing loyalty accounts.
The “never expires” promise has a limit as the account goes inactive after 12 consecutive months with no settled transactions. In addition, the $100 welcome bonus has its own fine print too: it can’t be used for fuel, and it expires at the end of the second month after it’s issued.
