Kroger confirms companywide phaseout of weekly print circulars

The Kroger Co. confirmed that it has begun phasing out its weekly print circular in newspapers, as revealed in a recent stream of published reports and social media postings.

Kroger is pulling the weekly freestanding inserts (FSIs) from newspapers by market area in phases and plans to do so companywide, a Kroger spokesperson told Winsight Grocery Business in an email.

“Kroger is joining many retailers in shifting the way our weekly ads are distributed,” the spokesperson said. “Printed copies will still be available in our stores for customers to peruse. Customers can also view our ads in the Kroger mobile app or at Kroger.com when they are planning their weekly grocery trips.”

Media reports that Kroger was ceasing its weekly circular in newspapers started surfacing in recent months around the grocer’s trade area and picked up steam in recent weeks. For example, The Dispatch in Columbus, Ohio, reported in mid-February that Kroger plans to stop its weekly circular with the newspaper after May 24, and the paper quoted a notice it received from the retailer.

“Kroger has been conducting research for over two years to better understand the changing media consumption habits of our customers, the contribution to sales provided by the printed weekly circular and negative impact to our distribution costs driven by increasing labor and fuel costs,” correspondence from Kroger to The Dispatch stated. “The analysis and data provided by our marketing, sourcing and 84.51° [data analytics] teams has informed our decision to discontinue distribution of the Kroger printed weekly circular in the The Commercial Dispatch publication for your market.”

In an April 25 tweet, Kroger explained to a customer why it was ending its weekly print circular. / Image: Twitter/Kroger

Likewise, the Detroit Free Press said in late April that Kroger’s Michigan division aims to end mailing of the weekly circular on May 28. The article featured a photo of the front page of Kroger’s FSI, which had a banner saying “Your Weekly Ad Is Going Digital” and included a QR code to link to the online circular. WBOY-TV in West Virginia reported last week that delivery of the retailer’s weekly FSI is slated to cease the week of May 29. The station’s article also linked to an April 25 tweet from Kroger—as did a report by CNN—that explained to a customer why the grocer was phasing out the print circular.

“We appreciate you reaching out to us. As a result of declining newspaper circulation and many of our partners reducing or eliminating physical distribution of their newspapers, we’re changing the way we get our circular to our customers to ensure they’re receiving it in the way they prefer,” Kroger told the customer in the tweet. “In the meantime, you can pick up a weekly ad in your local store or view it on our banner site or mobile app.”

Kroger’s phaseout of its weekly print circular reflects the overall decline of print media and advertising since the rise of the internet and, later, mobile technology. In recent years, grocery retailers have stepped up their number of digital special offers to capitalize on heavier consumer use of smartphones and the surge in online shopping. Digital deals also provide retailers with more information on shopping behavior that can then be used to make personalized savings offers that drive sales and loyalty.

Kroger is directing customers to savings offers in its digital circular, accessed via its mobile app and website. / Image courtesy of Kroger

In April 2021, Inmar Intelligence reported that digital load-to-card (L2C) coupon redemption exceeded that of paper FSIs and was the most redeemed coupon method for the first time ever. Inmar’s Promotion Industry Analysis found that digital L2C accounted for 29.3% of all redemption volume, compared with 28% for FSIs. The shift to digital stemmed mainly from lower paper redemption volumes due to decreased FSI volume, pandemic conditions and growth in online grocery use, not lower shopper interest in promotions, Inmar explained.

Still, many shoppers aren’t yet ready to make the jump to digital for their grocery savings. This past November, a coalition of national consumer groups urged supermarkets to rethink digital-only discounts, saying millions of customers are disconnected from these savings offers because they lack internet access and smartphones.

In a letter sent to the presidents of a dozen large supermarket chains, the National Consumers League, U.S. PIRG, Consumer World, Consumer Action and Consumer Reports urged the retailers to develop workarounds for “unplugged” shoppers—namely seniors and low-income households—so they have access to the same sale prices as “connected” consumers. Grocers sent the letter included Kroger, Albertsons, Stop & Shop, Shaw’s/Star Market, Ralphs, QFC, Jewel-Osco, Randalls, Fred Meyer, King Soopers, Smart & Final and Safeway.

The coalition said tens of millions of shoppers are effectively cut off from sale items in weekly store circulars designated as “digital,” “digital-only,” “digital coupon” or “digital offer.” Citing a 2021 study from the Pew Research Center, the consumer advocacy organizations noted that 39% of consumers over age 65 don’t own a smartphone, and 25% don’t use the internet. Likewise, 43% of households with incomes less than $30,000 lack broadband access.

Regional grocer Giant Eagle recently modified its approach to the weekly print circular in Cleveland. In January, the Pittsburgh-based retailer stopped delivering its print FSI in the area and shifted customers to access the circular via its mobile app. But then in April, Giant Eagle launched a two-page version of the print circular in the Cleveland area with ads plus a QR code listing additional sale items.