.April 1, 2011
Dear
Kroger has announced that effective April 13, 2011, they will no longer allow double-triple coupons for the Houston and surrounding areas. This new coupon policy, as well as the new savings plan provides no incentive to shop at Kroger once this is implemented. Couponers concerned about this new policy formed Kroger Couponers on Facebook which gained over 500 plus members from all regions of the country in just a few days. Our members have decided to Boycott shopping at Kroger and its affiliate stores. Without the double-triple coupons, your store's prices are too high. There is nothing unique about the products and services you offer that cannot be found at your competitors. We will vote with our hard-earned dollars by spending them elsewhere. Our members are also contacting their favorite manufacturers to inform them they will no longer be shopping at Kroger.
Although, Kroger has stated this is only for the selected Houston area stores, we are getting information that coupon doubles are being affected in many other markets as well as various changes in Kroger's coupon policy. This is adding to the discord of your customers resulting in them shopping your competition. Also, as an impact of the coupon doubles being refused in your stores, many couponers in all markets have decided to stand in union with their fellow couponers of Houston/Dallas/Fort Worth areas.
The total estimated years of loyalty Kroger is tossing aside is 5,000 years based on our members poll. Customer loyalty equals company profits. It’s seven times more expensive to acquire a new customer as it is to keep an existing customer and 20% of customers contribute 80% of a company's net profit. As you are aware, Mr. David Dillon is quoted in each of Kroger's (KR) stock performance reports indicating that customer loyalty drove the profits. From a consumer standpoint, double-triple coupons, Mega sales, and customer loyalty are what made Kroger and its affiliate stores profitable. The Kroger family of stores is not losing money with coupons, but is losing all their former loyal customers by ending the double-triple coupons. In the end, Kroger’s marketing and promotions are paid by the consumer in the cost of the products Kroger sells. Kroger is not paying for the cost associated with the double-triple coupons - the consumer is since it is built into your retail pricing structure.
I realize Kroger must make business decisions in the interest of your company succeeding. However, failing to listen to your customers and meet their needs will not allow your company to remain successful. Our members do not feel you are proactively listening and responding to our questions. Emails are being returned undeliverable, and non-answer form letters are being sent.
If Kroger does not reverse this new coupon policy, it will directly impact your business. The stock will drop, employees will be laid off, communities will go hungry, your prices will go up to offset the loss of customers going to your competition, and many stores will be forced to close. With today's economy, Walmart stands to be the largest winner in all of this. They are listening and making changes based on their customer's feedback ie their new coupon policy.
The Kroger Couponers have given Kroger their feedback, and now is the time for Kroger to reverse this coupon policy before this window of opportunity is closed. I ask, respectfully, for you to reconsider. Thank you for your time and I look forward to your reply.
Sincerely,
Kroger Couponers
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