Kroger is sunsetting its rewards debit card

Starting August 1, Kroger will no longer accept the Kroger Rewards Debit Card.

The grocer debuted the card, which offered savings on private-label products and added fuel rewards, in February 2019.

A Kroger spokesperson on Tuesday declined to comment on the reason for the sunsetting of the branded debit card or provide details on a possible replacement.

“We have made the decision to discontinue our Kroger Rewards Debit Card program at the end of July,” the Kroger spokesperson said in an email to WGB. “This does not impact Kroger’s industry-leading loyalty program. Customers are invited to participate in our loyalty program and continue saving on the items that mean the most to them.”

A note on Kroger’s website says that the grocer is “no longer accepting applications for the Rewards Debit Card” and that it apologizes for the inconvenience.

The debit card, which was tied to shoppers’ bank accounts, was billed as a way to “turn every purchase into rewards,” with 2% off on Kroger’s own brands and 50% more fuel points for every $1 spent.

Kroger’s Rewards Debit Card was introduced the same day as its Kroger Pay mobile payment solution that combined a shopper’s payment and grocery loyalty card information.

Kroger’s shoppers remain interested in fuel rewards, however.

Kroger CFO Gary Millerchip told analysts during the retailer’s first-quarter earnings call that fuel reward engagement remained high during the period, with a 19% increase in discounts redeemed over the previous year. Kroger’s loyalty program can save customers up to $1.25 per gallon on gas.

“Fuel is another important part of our strategy that drives customer loyalty and was a tailwind to profitability in Quarter 1,” Millerchip said, according to a transcript from financial services site Sentieo.

Kroger’s free loyalty program offers one Fuel Point for every dollar spent.

Kroger’s premium program Boost, which costs $59 per year for next-day delivery and $99 per year for delivery in as little as two hours, doubles those fuel point benefits and also includes savings on private-label products.