Kroger testing lower prices, rewards cards

By Clark Howard
clarkhoward.com

Tuesday, August 05, 2008

Kroger used to be considered an overpriced has-been by a lot of industry analysts in the grocery world. But they've proven more resilient than anyone thought.

The nation's second-largest grocer now is experimenting regionally with a couple of new tweaks at their Ralphs-branded locations.

First, they're limiting the use and redemption of coupons. They've instead taken the items that people commonly comparison shop and lowered the prices to compete with Wal-Mart and other cheaper players.

Second, Ralphs is doing a rewards card program that's in the mold of frequent flyer miles. If you sign up and agree to have your purchases tracked, you can earn vouchers to shop for free groceries.

If these regional tests prove successful, they may be rolled out nationwide.

The grocery industry is in the most intense time of experimentation that Clark can remember.

During our last recession, there was not the fierce competition that we have today with the warehouse clubs, Wal-Mart, Fresh & Easy and more. That means your ability to stretch your food dollar is the best it's ever been!

First, they're limiting the use and redemption of coupons. They've instead taken the items that people commonly comparison shop and lowered the prices to compete with Wal-Mart and other cheaper players.

Second, Ralphs is doing a rewards card program that's in the mold of frequent flyer miles. If you sign up and agree to have your purchases tracked, you can earn vouchers to shop for free groceries.

If these regional tests prove successful, they may be rolled out nationwide.

The grocery industry is in the most intense time of experimentation that Clark can remember.

During our last recession, there was not the fierce competition that we have today with the warehouse clubs, Wal-Mart, Fresh & Easy and more. That means your ability to stretch your food dollar is the best it's ever been!