USA TODAY International Edition

New Kroger membership will offer free delivery on orders over $ 35

- Alexander Coolidge

Kroger has announced it is launching a membership program, Boost, which will offer customers double gas points and free deliveries for online orders of $ 35 or more.

Being introduced in Greater Cincinnati as well as stores throughout Atlanta, Columbus and Indianapol­is regions, Boost will expand to other parts of the country next year.

Kroger hopes double gas points will draw legions of customers to become members as gas prices soar nationwide in 2021 to levels not seen in seven years. Customers will still max out their savings at $ 1 off per gallon – but they’ll hit that limit twice as fast.

“It’s the perfect time to launch with double fuel points,” said Stuart Aitken, Kroger’s chief merchant and marketing officer. “If you go to the gas station right now, it’s more than it’s been in a long time, so it’s a great deal for customers.”

Kroger sold $ 9.5 billion in gas in 2020, making it the nation’s No. 7 fuel retailer. It operates nearly 1,600 fuel centers.

The program is tiered: For customers who sign up for a $ 59 annual membership, the grocer will give them the enhanced gas points and free delivery within 24 hours. For $ 99 a year, members get the gas points and free delivery in as little as two hours.

New members to either membership tier receive a one- time welcome kit worth more than $ 100 featuring offers from Home Chef, Murray’s Cheese, Vitacost and Kroger’s store brands, offsetting the first- year cost of membership.

While launching a membership program appears to pit it against membership- based retailers like Costco, Kroger officials say it’s intended to boost its online business that competes with Amazon.

The nation’s largest supermarke­t chain is launching the program as it tries to maintain digital sales momentum. Early this year, Kroger revealed its 2020 online shopping business grew to $ 10 billion. Kroger has pledged to double that by the end of 2023.

With an eye toward that, Kroger is ramping its home delivery service using its own network of robotic warehouses that fulfill online orders. That effort is through a partnershi­p with United Kingdom’s online grocery provider Ocado.

Bill Bennett, Kroger’s vice president and head of e- commerce, hopes Boost membership will drive digital demand from customers as the store opens more robotic fulfillment centers.

In addition to Kroger stores, the grocer operates several regional supermarke­t chains in 35 states, including Fred Meyer, Harris Teeter, Ralphs, Mariano’s, Fry’s, Smith’s, King Soopers, QFC and others. The company has nearly 2,800 stores and employs 465,000 workers.

 ?? PROVIDED ?? For customers that sign up for a $ 59 annual membership, Kroger will give them the enhanced gas points and free delivery within 24 hours; for $ 99 per year, members get the gas points and free delivery in as little as 2 hours.
PROVIDED For customers that sign up for a $ 59 annual membership, Kroger will give them the enhanced gas points and free delivery within 24 hours; for $ 99 per year, members get the gas points and free delivery in as little as 2 hours.

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