Kroger Co. is testing a combination credit-and-loyalty card in two markets, with plans to add other markets next year.
The 1-2-3 Rewards MasterCard has a tiered rewards structure. Cardholders earn three points per $1 spent on Kroger’s private-label brands, including Private Selection; two points per $1 spent in Kroger-owned stores (including gas purchases); and one point per $1 spent anywhere. Points are cumulative, so purchases can accrue up to five points.
Shoppers get a quarterly voucher to redeem at Kroger, $10 for every 1,000 points earned. Rewards are mailed in November, February, May and August.
Kroger plans to expand the card program to other markets in 2005. The card will test in Cincinnati and Dayton before expanding. The Royal Bank of Scotland Group issues the cards, which double as Kroger Plus frequent-shopper cards.
Cincinnati-based Kroger has been testing pieces of a card-based loyalty program in different markets, and could have a sizable program by 2006. The grocer is working with marketing analysis firm dunnhumby, which manages U.K. grocer Tesco’s hugely successful Clubcard program (March 2004 PROMO).
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