:max_bytes(150000):strip_icc()/GettyImages-2157423691-8f2ab7b9c4c74aa3abd4706a7b21320e.jpg "Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It")
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Key Takeaways
- Kroger has reintroduced paper coupons at its stores, which has lifted the number of items sold, interim CEO Ronald Sargent said.
- Older shoppers and others were “disenfranchised” by the move to digital coupons, he said.
- Coupon use is rising as low and middle-income households hunt for deals, shop private labels and make smaller, more frequent trips to the store, Sargent said.
Printing paper coupons can still pay off.
Big grocery chain Kroger Co. (KR) has seen a “lift” in how many items it sells since reinstating paper coupons, interim CEO Ronald Sargent said Thursday. The move has also broadened Kroger’s appeal, particularly with older, less tech-savvy and less-wealthy customers, he said.
“They want the same deals that [the] person with the smartphone is getting,” Sargent said, according to a transcript of a conference call made available by AlphaSense. Those groups, he said, “were a little bit disenfranchised with our digital coupons.”
Kroger isn’t the only company noticing an uptick in couponing. The number of redeemed coupons—both digital and analog—has been on the rise since the early 2020s, according to CapitalOne research. Paper coupons aren’t entirely passe; may households still receive offers by mail or newspaper-style on their stoops. However, many consumer packaged goods brands—and their customers—have migrated to e-coupons in recent years, according to The Wall Street Journal.
Overall spending at Kroger held steady last quarter, but stress about the economy is changing how consumers shop, Sargent said.
Higher-income households are splurging on premium products, but getting more bang for their buck by buying large packages, he said. Low and middle-income shoppers are “making smaller but more frequent trips,” choosing private label options, relying more on coupons and searching for deals, he said.
“In both groups, we’re seeing less … discretionary spending,” Sargent said, according to the transcript. “We’re seeing some declines in snack categories [and] adult beverages.”
Kroger reported $33.9 billion in sales in the second quarter, roughly in line with sales a year earlier. The supermarket had adjusted earnings of $1.04 per share, compared to $0.93 last year.
Shares in the 2,700-store chain have climbed since late 2024 when a court nixed Kroger’s plans to merge with Albertsons (ACI). Interest in the stock didn’t change dramatically this spring when former CEO Rodney McMullen resigned after a probe into his conduct.
Company shares were recently up about 1% and have increased about 11% so far this year.
