A RetailWire poll in January found that 27 percent thought that gas prices would have to hit $3.50 a gallon to seriously hurt the recovery seen in retail sales. Forty-three percent put the tragic number at $4 a gallon. With prices within the basic range of those two price points, there has yet to be a major drop-off in purchasing, but there is already evidence that consumers, particularly those from the middle-class down, are altering behavior to stretch dollars.
With rising gas prices as the backdrop, in rides the white knight of fuel rewards. Retailers have been using free or discounted gas for years as a means to drive store traffic, and there's nothing like spiking prices at the pump to make these programs appealing to consumers.
A case in point is Kroger. It's new fuel rewards program gives consumers credits for up to $1 a gallon on gas for purchases made in the chain's stores. Kroger shoppers have the option of redeeming their fuel rewards at the chain's Fuel Centers or at Shell stations.
The program gives shoppers 10 cents off a gallon for every $100 spent at Kroger locations, 50 cents off for $500 and $1 off with purchases of $1,000. The chain's previous program capped the rewards at 10 cents a gallon for fill-ups.