Krogers Has Gone Crazy!

[Hound dog]

I found this in another forum and thought I'd share.

KROGER STORES OFFER CUSTOMERS FREE GROCERIES

Beginning May 2, New Program Gives Kroger Customers an Extra $30, $60 or $120 When They Turn Their Tax Refund or Economic Stimulus Checks into Kroger Gift Cards

CINCINNATI, Ohio, April 16, 2008 – The Kroger Co. (NYSE: KR) said today that beginning May 2, 2008, customers can receive free groceries through a gift card program available exclusively in Kroger stores. The program allows Kroger customers to exchange their tax refund or economic stimulus checks for a Kroger gift card with an extra $30.00, $60.00 or $120.00 added to it. Gift card amounts correspond to the payment amounts outlined by the Internal Revenue Service for the federal economic stimulus program.

For example:
Load This Amount Onto A Kroger Gift Card: Receive Kroger Gift Card(s) Valued At This Amount:
$300.00 $330.00
$600.00 660.00 (2 gift cards valued at $330.00 each)
$1,200.00 $1,320.00 (4 gift cards valued at $330.00 each)

http://www.thekrogerco.com/corpnews/...s_04162008.htm

 

[Fran]

Do you think this is so the income tax money isn't frittered away and will be used for food?
Strange.

 

[meowbunny]

Sounds pretty smart to me. Over 50% of gift cards are never used. Some states allow gift cards to have expiration dates; some don't. Some states allow gift cards to start charging a monthly fee if not used within a certain period of time; some don't. Grocery gift cards are frequently used to purchase the luxury foods, which have bigger markups, rather than necessities. No matter what, it pretty much guarantees that purchases will be made in their store. Sounds like an excellent marketing tool.

 

[LittleDudesMom]

Actually, other retailers, I believe Sears and Pennys as well, are offering a 10% bonus as well. They are scrambling to get your money!

Sharon

 

[donna723]

Actually, from Krogers' standpoint, it's not such a bad idea. If you don't really need the money for something else ... EVERYBODY has to buy groceries, and this would assure that you would buy those groceries from Krogers.

 

[Lothlorien]

Shame there aren't any Krogers around here. That is a good idea! I would love to get extra groceries for free.

 

[4sumrzn]

I waited up last night to hear what they were going to say about this on the news. I had a feeling I was right & I think it's a great idea on their part. The news here reported up to $180 extra though!?!? Anyway, I still think it's a great idea IF you "just" don't have anywhere else that "needs" that money. I would do it if I wasn't planning on my first vacation EVER with my family this summer.....wasn't quitting my job & was confident something unexpected wasn't going to fall in my lap

 

[trinityroyal]

KROGER STORES OFFER CUSTOMERS FREE GROCERIES

From the standpoint of Krogers it certainly is a good idea.
A guaranteed pool of shoppers at their stores only, and as Meowbunny mentioned, lots of people don't get around to using the gift cards.

And...while people are hanging onto their gift cards, Krogers gets to invest all of that money into their bank accounts and accumulate the interest. I know that interest rates are not terribly high, but 3% on 1 million dollars is $30,000. That will certainly offset the costs they incur by giving away free money.

Sounds like everyone benefits. Customers get extra grocery money, Krogers gets a way to make a profit while benefiting their customers. Good deal all around.

Trinity

 

[Hound dog]

Yeah. I just wish we could do it. But if we get ours back, it's going for bills.

 

[flutterbee]

Krogers is so expensive that the 10% extra really isn't that much. I shop there, but that's because we have 3 of them (!!!) in a 5 mile radius and so it's convenient. But, when I'm really pinching pennies, I go somewhere else.

Other than that, definitely a good idea on Krogers part.

 

[SRL]

I never used to shop Kroger but they're right on the way home from my chiropractor appointments as well as the park where I walk. I keep going back because they drastically mark down produce, dairy and meats a few days before expiration as well as at other times when they have a surplus. I pick up those pricey salad mixes for $1.29. Buttermilk was 75 cents the other day and went a long way in baking and pancakes. Expensive cheeses that I normally wouldn't buy for $2 etc. Yesterday I picked up 2 big cartons of strawberries for 99 cents apiece and I'm going to make jam. Sure I have to use it up right away but there's only been one time when I felt like freshness was a problem.

I still hit up Walmart as well as one other neighborhood store but this has been a huge help to my grocery budget.