DISCUSSION

Black Friday Promo in the Cards for Kroger

Written by Tom Ryan
By Tom Ryan

On Black Friday, Kroger Co. began a two-week promotion across its banners giving shoppers $10 back for every $100 worth of gift cards they buy at their stores. Participating retailers include Applebee's, Bass Pro Shops, Bath & Body Works, Best Buy, iTunes, Sears and Spa Finder.

Customers can mix and match gift cards from participating retailers to reach the $100 amount and then receive $10 off their total purchase. The maximum savings per household on the gift card sale is $50. The deal lasts through Sunday, Dec. 13. It's the first time Kroger has aimed such a promotion at Black Friday.

The move comes as Kroger, Safeway and other chains have been expanding gift card offerings and increasingly using them and other non-traditional grocery items for promotions. The activity also comes in an environment where competition is heating up against Wal-Mart, which has become the largest food retailer and runs some of retail's most aggressive Black Friday deals.

Here are a few other Black Friday and holiday promotions from supermarkets:

  • Safeway and its banners ran a similar promotion offering customers $20 off their next shopping trip of $50 or more when they bought $200 worth of gift cards through their loyalty card. Participating retailers included iTunes, Macy's, Olive Garden, Red Lobster and Sears.
  • Under Stop & Shop's Holiday Reward Coupon promotion, every dollar spent on loyalty cards earns a customer one point. At 250 points, customers earn a 5% off Holiday Reward coupon; 450 points, a 10 percent off coupon; 600 points, a 15 percent off coupon; and 800 points, a 20 percent off coupon. The total amount of points are tracked on receipts. Customers have until Dec. 10 to turn in their allotted points for their Holiday Reward Coupon and have until Dec. 25 to redeem it;
  • Shop Rite on Friday and Saturday only was offering deals with its loyalty card on an Acer 11.6" Net Notebook, $288; a Haler 32" LCD TV, $339.99; a Venturer 19" LCD TV, $159.99; and a Nintendo DSi Game System, $159.99. A separate "Holiday Gift Ideas" section featured sales on the Holiday Barbie Doll, a Rocky the Robot Truck, an X Box, and an Angels & Demons DVD.
  • Kings, the New Jersey grocer, ran two pages in its circular touting "More Great Holiday Choices Than Any Other Food Market!" Items included a Starbucks mug & coffee, France's Domaine vinegar, a popcorn gift bag, Italy's Lucin soup and Scharffen Berger cocoa powder. Kings also gave a 10 percent discount on purchases of $75 and up on Friday, Saturday and Sunday.

Discussion Questions: Is there a bigger opportunity for supermarkets to market around Black Friday than they have in the past? How important is this on the heels of Thanksgiving activity? What types of promotions make the most sense for grocers in light of competition from supercenters, warehouse clubs and others selling more than just food?

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