The Kroger Co. has expanded its rewards program to allow members greater flexibility in how they save, enabling the redemption of Points for dollars off groceries in-store and online. Previously, Points were primarily used for fuel discounts, but members can now choose between savings at the pump or discounts on their grocery bill. This change aims to help customers stretch their budgets by offering savings options that fit their individual needs.

Members can earn one Point for every $1 spent on purchases made with a reward card in-store or online for Pickup or Delivery. Points can also be accumulated on everyday purchases, qualifying gift cards, qualifying prescriptions, and during special Point events. Boost members, a paid subscription tier, earn 2X Points on qualifying purchases and receive exclusive benefits such as free delivery.

The redemption process varies based on the type of savings selected. For fuel discounts, members save 10 cents per gallon at the pump for every 100 Points redeemed, up to $1 per gallon. For grocery discounts, members receive $1 off purchases for every 100 Points redeemed, up to $10 per day. To redeem Points for groceries, customers must log into their digital account at Kroger.com or via the Kroger app and apply the Points before checkout.

To encourage participation during the summer season, Kroger has introduced limited-time offers to help customers earn Points faster. These offers include 4X Points on Fridays through July 24, 4X Points from July 1 through July 4, and a digital coupon offer for 4X Points on Private Selection products available through July 18.

Redemption Options

"We're excited to help customers stretch their budgets and give more choices in how they use the rewards they earn shopping with us," said Megan Shaffer, group vice president of customer growth and strategy at Kroger. "Whether they're saving up to $35 on their next fill-up or taking dollars off their grocery bill, customers can now choose the savings that matter most to them."

The Kroger Co. reported mixed first-quarter results, prompting analysts at Barclays, Morgan Stanley, and Guggenheim to lower their price targets on the grocery retailer. Kroger reported adjusted earnings of $1.58 per share, missing the consensus estimate of $1.59, while revenue rose to $46.12 billion, topping analysts’ expectations of $45.47 billion. The company affirmed its fiscal 2026 outlook for identical sales, excluding fuel, to increase 1% to 2%.

Kroger expects adjusted earnings of $5.10 to $5.30 per share, compared with the Wall Street consensus estimate of $5.27. The company maintained its forecast for FIFO operating profit of $5.0 billion to $5.2 billion, free cash flow of $2.7 billion to $2.9 billion, and capital expenditures of $3.8 billion to $4.0 billion.

CEO Greg Foran stated, "I joined Kroger because I believe it represents the best opportunity in retail. We serve millions of families every day, in our stores and online. We have the right stores in the right places, unmatched customer insights, and the ability to win. Our focus is clear: to become America’s best grocer. We will measure ourselves against that every day."

Following the earnings announcement, analysts revised their ratings. Morgan Stanley analyst Simeon Gutman maintained the stock with an Equal-Weight rating and lowered the price target from $73 to $67. Barclays analyst Seth Sigman maintained the stock with an Equal-Weight rating and cut the price target from $68 to $61. Guggenheim analyst John Heinbockel maintained Kroger with a Buy rating and lowered the price target from $78 to $71.

Kroger shares rose 0.7% to trade at $56.99 on Monday.