Kroger says Boost membership enrollment has ‘exceeded’ expectations

Dive Brief:

During the first year of Boost by Kroger Plus, the grocery company’s paid membership program, members saved over $115 million, according to a Tuesday announcement.
Kroger is celebrating the milestone with a limited-time offer that will give new annual members who sign up between the July 19 and Aug. 8 window 1,000 bonus fuel points.
The Boost membership program expands on Kroger’s free loyalty program, providing more savings on delivery and fuel as well as offering other benefits. Kroger said in the announcement that Boost membership enrollments “have exceeded the company's expectations” for its inaugural year.

Dive Insight:

The limited-time offer marks the one-year anniversary of the grocer expanding its Boost membership program nationwide after the initial launch in November 2021.

With Boost, Kroger shoppers can save up to $1,000 per year on fuel, groceries and delivery fees, the press release noted. Stuart Aitken, Kroger’s senior vice president and chief merchant and marketing officer, said in the announcement that Boost is the “industry’s most affordable membership program.”

Depending on the membership type, shoppers can receive free next-day or two-hour delivery on orders over $35, per the announcement. For savings on fuel, Boost members can earn twice the fuel points for every $1 spent each day as well as extra points during fuel promotions. Additionally, for each 100 fuel points, customers can save 10 cents per gallon of fuel, up to $1 per gallon.

Upon enrolling in Boost, members receive a “welcome package” with savings on Kroger’s store brand products such as Murray’s Cheese, Vitacost, Home Chef, Simple Truth and Private Selection.

During Kroger’s fourth-quarter earnings call in early March, Chairman and CEO Rodney McMullen said Boost’s early results were “exceeding our expectations with incremental engagement and overall household spend.” He added that Kroger would be evolving the paid membership’s benefits to “broaden its appeal and create additional customer value.”

“We'll be continuing to invest in the customer in key areas of value that we know are important to them, whether that's pricing, promotions, continuing to roll out Boost, which creates a short-term headwind as you build the loyalty of the customer and get the incremental value over a longer period of time,” Kroger CFO Gary Millerchip said on the call, per a Motley Fool transcript.