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Kroger Fuel Sale Facts – Over 9 Million in Fuel Sales 2010 - Kroger Suing Texas Co Excentus The Kroger Fuel Rewards does not cost Kroger it is all profit – they had over 9M in fuel sales in 2010. Kroger has over 1000 fuel centers, which boost their profit margins - low overhead costs. Kroger fuels sales increased 36.6% in 2010 and account for 12% of Kroger revenue.
As reported in Kroger financials identical supermarket sales rose 3.8 percent for the 4th quarter, 6.3 percent including fuel sales. Fuel sales alone accounted for 2.5 percent of Kroger's profit for 4th quarter. http://www.thekrogerco.com/corpnews/documents/2010_q4_table4.pdf
Loyalty programs are nothing but a marketing gimmick to create a false sense of reward to the consumer. Studies show 40% of loyalty rewards participants never redeem their rewards – Kroger counts on that. The net effect of a loyalty program is to modify the consumer’s behavior in creating a purchase pattern/habit loyal to Kroger thus increasing their profits. Kroger averages $.12-$.14 profit margin per a gallon of gas. Kroger fuels sales increased 36.6% in 2010 with over $9 million in sales. You don’t get loyalty from a program; you get it from delivering what the customer wants better than the competition. You can’t buy loyalty - you earn loyalty.
Bring back double-triple coupons – BOYCOTT KROGER!!
+ 40% of long-term reward program members never redeem their rewards. (C-METRIX SOLUTIONS)
The spin Kroger continues to sell its customers continues. Kroger is not having any communication, transparency, or sharing of information with its loyal customers.
Kroger said the recent decision to end double-triple coupons on 4/13 for HOUSTON is:
1.they want to go digital
2.not enough coupon usage
3.the double coupons cost Kroger too much money
4. the new savings plan for $1 off on fuel rewards had high costs that Kroger would need to end double-triple coupons to cover this expense
++NOTE Kroger is suing Excentus (Fuel rewards Company): Texas company, Kroger in legal fight http://finance.yahoo.com/news/Texas-company-Kroger-in-legal-apf-1956322027.html?x=0.v%3D6
Kroger 4th Quarter Profits: http://www.wcpo.com/dpp/news/kroger-reports-strong-profit-in-4th-quarter
Kroger 2010 10k: http://www.sec.gov/Archives/edgar/data/56873/000110465911017372/a11-2299_110k.htm
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