Kroger's Fuel Rewards Could Benefit Its Private Label

June 21, 2011
/ Print / Reprints /
/ Text Size+
Kroger Supermarkets has expanded its fuel rewards program to the Dallas-Fort Worth area.

Kroger Supermarkets has expanded its fuel rewards program to the Dallas-Fort Worth area. The program, which offers points on gift cards, prescriptions and groceries, can also help the Cincinatti-based grocer promote its private label brand, according to Paula Rosenblum, managing partner at Miami-based  Retail Systems Research (RSR Research).
Kroger can begin promoting its private label via fuel rewards by offering free private label items with the purchase of a national brand, according to Rosenblum. Further growth can also come from offering extra points and rewards for buying its private label, she adds.
"Kroger could, at some point, offer more points for buying its private label stuff, but I would wait a while before doing something like that," states Rosenblum. "First you want to get the customer engaged."
The fuel rewards program currently drives engagement by offering a savings range of 10 cents to one dollar savings per gallon for every 100 points customers earn on their Kroger Plus card. Even more aggressive offers, such as offering 100 points for every $100 spent on Kroger products, are also offered with the 1-2-3 REWARDS MasterCard.
Similar tactics, such as offering frequent buyer points, can be used for the growth of the company's private label, states Rosenblum. "That's [offering frequent buyer points] not a bad way to begin: "get an extra 500 points for buying $x of private label something-or-another.”


Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.



Image Galleries

November 2014 New Food Products

This month's new food products are Flours, crepes, lollipops, several candy items, pancakes, dip, fish, raisins, pizza, almond milk, peanut butter, and a breakfast bowl.


Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB November 2014 cover

November 2014

The November 2014 issue of Private Label Buyer - its last issue - includes articles about the retailer as manufacturer and OTC/healthcare items, as well as category insights on pizza and household goods. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px

PLB Marketplace