Investigation: Kroger Loyalty Program Tracks Shoppers’ Data Far Beyond the Checkout Lane

You scan your loyalty card at checkout to save $1.30 on coffee. Now what?
A new investigation by Consumer Reports reveals that Kroger collects and monetizes customer data on a scale that exceeds that of many other retailers.

How Loyalty Programs Benefit Shoppers

There’s no question that retail loyalty programs offer plenty of benefits. Targeted coupons in the store’s app, product recall alerts, and fuel discounts at gas stations are just a few rewards you get in exchange for a few clicks and some personal information.

But while these programs may seem harmless—or even helpful—the new investigation shows there’s a trade-off. Kroger, in particular, collects far more information than many shoppers realize, tracking purchases, shopping habits, and even combining that data with other sources to turn everyday grocery trips into a valuable revenue stream.

Monetizing Your Shopping Habits

Derek Kravitz, an investigative reporter with Consumer Reports, tells Cleveland’s WKYC-TV that Kroger’s precision marketing division generated about $527 million for the company last year. These “alternative profit ventures” account for about 35% of Kroger’s net income.

“Store chains often collect your name, home address, email address, and phone number, then study what’s in your grocery cart. Many retailers do this, but Kroger, one of the largest grocery chains in the U.S., is doing it in a much bigger, more profitable way,” Kravitz says.

In a statement to Consumer Reports, a Kroger representative said, “Demographic data helps filter audiences so customers receive relevant coupons, promotions, and discounts,” adding that the company’s data usage and privacy policies are fully available online.