Analysis

Kroger simplifies rewards program, raising the bar for Big Lots workers

Kroger’s new Points program makes grocery and gas savings easier to use, raising pressure on Big Lots cashiers to explain value at checkout.

Derek Washington··2 min read
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Kroger simplifies rewards program, raising the bar for Big Lots workers
Source: theshelbyreport.com

Kroger simplified its rewards system on June 25, turning a long-running fuel-points program into a broader Points setup that can be used for groceries in store and online, as well as for gas at the pump. The change is meant to help customers stretch budgets and give them more choices in how they save, but it also sharpens the pressure on value retailers like Big Lots to make savings feel immediate and obvious.

Under the new setup, Kroger members earn one Point for every $1 spent when they use a Loyalty ID or Loyalty Card. Boost members get 2X Points and free delivery benefits on qualifying orders. Kroger says 1,000 points can be redeemed for up to $10 off groceries per day, while fuel savings can reach up to $1 per gallon on as much as 35 gallons, or $35 per fill-up.

The company says Points expire at the end of the month after they are earned, and its terms and conditions reserve the right to modify or discontinue the loyalty program at any time without notice. Kroger also said the fuel-points program has existed for more than two decades, making the rebrand to simply Points part modernization and part signal to shoppers that the rewards are meant to be used now, not saved up indefinitely.

AI-generated illustration
AI-generated illustration

That matters on the store floor at Big Lots, where cashiers and supervisors already deal with customers who are watching every item and questioning every charge. When a rival makes savings easier to understand and easier to redeem, the interaction at checkout changes too: more shoppers ask how the deal works, whether it applies in the aisle or at the register, and how quickly they can turn spending into something useful.

Big Lots has its own strain on the value proposition. The company filed for Chapter 11 bankruptcy protection on September 9, 2024, citing inflation and high interest rates, then entered a sale process involving Nexus Capital Management. Analysts have also said Big Lots has been losing ground against value competitors such as Ollie’s Bargain Outlet, Aldi and Walmart.

Kroger’s move adds another reminder that in discount retail, loyalty is no longer just a marketing layer. It is part of the selling job, and the stores that cannot explain savings cleanly are the ones that risk losing the next basket.

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