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Kroger Makes a Half-Hearted Attempt to Provide Digital Coupon Discounts to Unplugged Shoppers

As regular readers know, Consumer World and a coalition of other consumer organizations including Consumer Reports have been trying to get supermarkets that offer digital coupons to also offer a simple in-store alternative for those shoppers who don’t have internet access or a smartphone.

Digital coupons generally require a shopper to use the store’s app or website to find and load digital-only discounts onto one’s loyalty account/card. Then, when they check out in the store and scan their card, they get the digital discount. But for non-tech-savvy consumers of any age, many low income shoppers, the 25-percent of seniors who don’t use the internet, and the 39-percent who don’t own a smartphone, these money-saving offers are illusory.

Digital deal -watermelon

See some of our prior coverage of the digital coupon issue here.

Last week, Kroger issued a statement [see end of article] seemingly recognizing the financial hardship that many experience because they are not tech-savvy and thus far have been generally shut-out of digital discounts. Here’s their solution:

*MOUSE PRINT:

We understand that not all customers choose to engage digitally when shopping with retailers. Customers who would like to take advantage of digital coupons and do not have a digital account, can receive the discounted pricing at any customer service desk.

Because Kroger’s PR folks would not tell us how exactly the new system works, we called two stores, one in Ohio and one in Kentucky. The customer service person in Ohio said that a non-digital shopper can bring the sale items that require a digital coupon to the courtesy desk, where they can buy them at the discounted price. The rest of their groceries have to be purchased in the regular checkout line.

The Kentucky store customer service person asked if I had a computer or a smartphone. I said no. He then suggested that I go to the public library where I could access the digital coupons on their computer.

Thanks for the helpful suggestion. Even the first response is a bit impractical and time-consuming for both shoppers and store personnel. On top of that, how do shoppers even know that Kroger and its various nameplate divisions have changed their policy about giving digital discounts to non-digital customers? You have to read it on the internet, which many cannot do. And those who can go online, would never realize there is a new policy by reading their coupon FAQ which has not been updated:

*MOUSE PRINT:

Kroger coupon faq

There is no mention whatsoever about how an unplugged shopper can get the same savings. Only tucked away on a separate coupon policy page of their website does it say those folks can go to the courtesy desk to get the discounts. [Thanks to Coupons in the News for that discovery.]

We asked the PR folks at Kroger some additional very pointed questions and about issues raised by their policy change, but we have only received their canned statement noted above so far.

While Kroger should be commended for taking at least an initial step to help stop digital discrimination in retail stores, there are better solutions available. Simply requesting the digital discount at the checkout is the easiest way. Alternatively, some stores are experimenting with an electronic kiosk near store entrances where all a shopper has to do is scan their loyalty card or enter their phone number, and all that week’s digital coupons are then automatically loaded onto their loyal card account.

We hope stores realize that digital discrimination hits many of the most vulnerable consumers in the pocketbook at the worst possible time — when inflation continues to batter shoppers’ wallets.

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Sneaky Ways Drugstore Reward Programs Limit Redemptions and Cost You Money – Part 2

Last week, we looked at the MyWalgreens reward program and demonstrated how their rules often force customers to pay additional money out of their own pocket despite having enough Walgreens funny money in their rewards account.

This week, it is CVS’ turn.

CVS – ExtraBucks

We’ve all gotten the CVS ExtraBucks slips that pop out of the register after making a purchase of a product that promises a particular bonus. For example, they may advertise “Buy brand X shampoo, and get $2 in ExtraBucks.” In a sense, it is a nasty tactic because you are not getting dollars off the item you are actually buying, but rather those dollars can only be applied to a subsequent purchase. And they expire rather quickly — usually in about three weeks.

CVS Extra Bucks

Let’s say that you have several individual ExtraBucks coupons in your possession — one for $1, one for $2, and one for $10. Now you want to buy a $7 item. While you can pay with the $10 coupon, you will lose $3 because the system does not give back change. On the other hand, if you use just the $1 and $2 coupon on that $7 item, you will still owe $4 in real money.

So even though you have a total of $13 in ExtraBucks, it is not like an account you can draw against to pay in full for anything you want up to your total balance.

We think that CVS should allow you to bank your ExtraBucks and simply let you drawn down your balance and apply whatever amount you like to your purchases.

When we posed this idea to CVS, the company said, “Unfortunately, we won’t be able to comment.”

Here’s an even better idea for CVS. How about dropping ExtraBucks entirely and simply reduce the sale price of the advertised item by the amount of the ExtraBucks that would otherwise be provided upon its purchase? Fat chance that will happen.

Feel free to talk about your experiences with CVS ExtraBucks in the comments.

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Ho Ho NO: Unplugged Shoppers Face Higher Grocery Prices

UPDATE: On January 12, a New Jersey assemblyman filled the first bill in the country requiring retailers who offer “digital coupons” to also provide paper ones of equal value to those customers who do not have internet access.

The millions of seniors who don’t use the internet (25% according to Pew Research Center) or who don’t have a smartphone (39%) are being charged substantially higher grocery prices than their more tech-savvy counterparts because they cannot clip the e-coupons necessary to be charged the advertised sale prices in the store. Unplugged lower income shoppers face the same roadblock. (See our recent story.)

Look at just the front page of this ad from a Washington, DC Safeway store right before Christmas advertising in-store prices. Note how much more an unplugged (“non-digital” in red) shopper pays versus a digital shopper:

*MOUSE PRINT:

Safeway non-digital prices

Just on those five items being purchased in-store, a non-digital shopper even if a member of the store’s loyalty program would have paid $67.03 compared to just $42.73 for a shopper who was able to clip the digital offers before going to the store. That is almost $25 more for the very same items.

Similarly, at this Star Market in Boston, an unplugged shopper would pay over $29 more for just these seven items.

*MOUSE PRINT:

Star Market non-digital prices

In November, five national consumer organizations including Consumer World called on a dozen leaders of the supermarket industry to make an offline alternative available in their stores to disconnected shoppers so everyone could have an equal opportunity to pay the same discounted prices. The response has been silence from them or a bit of misleading PR-spin.

Now it is your turn to speak up and speak out telling supermarket executives how “digital-only” sale prices unfairly discriminate against the millions of shoppers without internet access or smartphones. Urge those companies to make a new year’s resolution to find a way to offer their unplugged customers the same lower sale prices that more digitally-capable shoppers pay.

So… please consider sending an email to the CEOs of Albertsons Companies (which owns Acme, Albertsons, Carrs, Jewel Osco, Randalls, Safeway, Shaw’s, Star Market, Tom Thumb, and Vons), The Kroger Company (which owns Baker’s, City Market, Dillons, Foods Co., Fred Meyer, Food 4 Less, Frys, Gerbes, King Soopers, Kroger, Marianos, Metro Market, Payless, Pick ‘n Save, QFC, Ralphs, and Smiths), and Stop & Shop.

The Albertsons Companies: Vivek.Sankaran@Albertsons.com

The Kroger Co.: Rodney.McMullen@kroger.com

Stop & Shop: Gordon.Reid@stopandshop.com

Perhaps together we can help convince stores to treat all their shoppers equally and fight inflation a little more easily.