Kroger Launches Paid Membership Program

Kroger's loyalty membership program Boost is launching nationwide, representing the latest expansion of its loyalty program. 

The annual membership provides customers unlimited free grocery delivery on orders of $35 or more, fuel discounts of up to $1 per gallon and additional savings on the grocer's Our Brands products, the Cincinnati-based grocer said. Kroger estimates that the membership can save customers more than $1,000 per year on fuel and grocery delivery. The tiered program gives customers the choice of two annual membership levels at $59 or $99. 

"As customers continue to evolve how they shop and eat, this expansion of our loyalty program offers more personalized value in groceries and fuel, alongside easier access to convenient shopping solutions, such as Delivery," said Yael Cosset, SVP and chief information officer for Kroger. "We are committed to consistently delivering a best-in-class seamless experience with zero compromise—the fresh and quality products our customers want, how they want it and when they want it. We recognize this is especially important as our customers are facing an inflationary environment and rising fuel prices."

Chairman and CEO Rodney McMullen revealed during the June 16 earnings call that Kroger's loyalty membership would launch nationwide following the positive results in several pilot divisions. The grocery retailer was encouraged by the number of new members in the four pilot divisions as delivery sales increased significantly compared to non-Boost divisions, McMullen said in a statement. 

"Kroger achieved strong first-quarter results as we successfully executed on our strategy of Leading With Fresh and Accelerating With Digital,” he said.

“Boost contributes to our rapidly expanding seamless ecosystem, bringing value and convenience to many more families across America as we roll-out new delivery fulfillment centers," said Bill Bennett, Kroger VP and head of e-commerce. Bennett also added that that through Boost, Kroger is confident it has built a differentiated membership program that its customers will love.

On the heels of the company's strong fiscal first quarter, Kroger raised its full-year guidance, saying it now expects identical sales without fuel to be in the range of 2.5% to 3.5%, adjusted FIFO operating profit of $4.3 billion to $4.4 billion and adjusted net earnings per diluted share to be in the range of $3.85 to $3.95.