Kroger unveils annual subscription program

The Kroger Co. has introduced Boost by Kroger Plus, an annual subscription service that offers online benefits and additional rewards via the Kroger Plus loyalty program.

In announcing the new offering yesterday, Kroger said Boost by Kroger Plus comes in two membership tiers, priced at $59 or $99 per year. All members get free delivery for online orders of $35 or more and double fuel points (up to $1 off per gallon of gasoline) for each dollar spent on groceries and general merchandise. The $59 annual membership provides delivery within 24 hours, while the $99-per-year option offers delivery in as soon as two hours.

Those signing up for either Boost membership tier receive a one-time welcome kit valued at over $100, with offers from Home Chef, Murray’s Cheese, Vitacost and The Kroger Co.’s “Our Brands” private labels. The kit offsets the first-year cost of membership, the Cincinnati-based supermarket giant noted.

Customers enrolling in Boost by Kroger Plus also receive double the fuel points they earn from grocery and other purchases.

Kroger is launching Boost by Kroger Plus through its Cincinnati-Dayton, Columbus and Atlanta and Central (Indianapolis) divisions. Plans call for the membership program to roll out to more regions next year, the company said.

“Kroger Boost is an accelerant to the Kroger Family of Companies’ rapidly expanding seamless ecosystem, which includes our new Kroger Delivery fulfillment centers,” Bill Bennett, vice president and head of e-commerce at The Kroger Co., said in a statement. “Through Boost, Kroger remains uniquely positioned to be ‘Fresh for Everyone,’ making grocery delivery accessible to every customer through the industry’s most affordable free delivery membership. Combine this with a 2X multiplier on our industry-leading fuel points program, and we’re confident we’ve built a truly differentiated membership program that our customers will love.”

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Boost by Kroger Plus builds on the Delivery Savings Pass subscription that Kroger quietly piloted in Dallas and Los Angeles starting in May 2020. For $79 annually, the membership provides unlimited free grocery delivery for orders of at least $35, waiving the normal $9.95 fee per delivery order. Delivery Savings Pass e-gift cards also are available.

Kroger’s new subscription service continues a trend of grocery retailers trying to lock up followings of loyal, omnichannel shoppers via membership programs, à la Amazon’s successful Prime customer benefits plan, which also extends to the e-tail giant’s Whole Foods Market subsidiary. Retailers now offering or piloting such subscription programs include Walmart (Walmart ), Albertsons Cos. (FreshPass), Publix Super Markets (Club Publix), Ahold Delhaize USA’s The Giant Company, Hy-Vee (Hy-Vee Plus), SpartanNash (Fast Lane) and Harris Teeter, among others.

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“Customers are increasingly looking for more convenient ways to feed their families and shop for groceries while consolidating trips and saving money,” commented Scott Hays, president of the Kroger Cincinnati/Dayton Division, which more than 100 supermarkets plus pharmacies, fuel centers, warehouses and offices in greater Cincinnati and Dayton, northern Kentucky and eastern Indiana. “From fresh food to household essentials, Boost elevates everything Kroger has to offer while providing our customers access to a new level of savings and benefits.”