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CINCINNATI — In the year since Kroger Co. introduced paid subscription memberships to accelerate its e-commerce growth, the program saved members more than $115 million, the retailer announced last month.
Boost by Kroger Plus was launched in just four of the retailer’s divisions — Cincinnati-Dayton, Columbus, Atlanta and Central (Indianapolis). The two-tiered program offers various online benefits and additional rewards through the Kroger Plus loyalty program. For $59 per year, members are eligible to receive double fuel points (up to $1 per gallon of gasoline) and free one-day delivery on orders of $35 or more. For a $99 annual fee, members receive free delivery in as little as two hours plus the double fuel points.
Citing the rollout’s “promising results,” Kroger chairman and chief executive officer Rodney McMullen announced that Boost by Kroger Plus was launching nationwide. “We are encouraged by the number of new members in the four current pilot divisions,” McMullen said during Kroger’s first quarter earnings call. Delivery sales increased significantly compared to non-Boost divisions, he said, and delivery retention improved.
“This next-generation loyalty program is deepening our relationships with customers as they continue to look for value and convenience,” McMullen told investors.
Members’ savings drove increased customer engagement across stores, e-commerce channels and fuel centers, Kroger said, and Boost membership enrollments exceeded expectations for the inaugural year.
In expanding on savings available through Kroger’s free loyalty program, Boost by Kroger Plus presents members with savings of up to $1,000 per year on fuel, groceries and delivery fees, any way they shop, the company said.
Beyond free delivery and savings on fuel, Boost by Kroger Plus offers members exclusive benefits that include a “welcome package” offering savings on purchases of Kroger-branded merchandise such as Murray’s Cheese, Vitacost, Home Chef, Simple Truth and Private Selection.
“Boost by Kroger Plus is making grocery delivery accessible to more customers through the industry’s most affordable membership program,” said Stuart Aitken, senior vice president and chief merchant and marketing officer at Kroger. “Combined with our industry-leading fuel points program, customers are saving big on groceries and fuel unlike ever before. We are so grateful to our members who joined us in our inaugural year, and we look forward to offering more savings and welcoming new members.”
