Kroger Grocery Charging Fees On Cash-Back With Purchases

Written By: Ishton W. Morton – July 31st, 2019

Kroger the Cincinnati-based grocery chain

According to Rodney McMullen Chairman and CEO of Kroger said in a statement;  “Kroger solidly delivered on what we set out to do in 2018, which was an investment year that laid the groundwork for us to achieve our 2020 Restock Kroger targets including financials. We reached our (First-In, First-Out) FIFO operating profit goal and finished the year with sales and business momentum. We have a clear path to achieve $400 million in incremental FIFO operating profit growth and $6.5 billion in cumulative Restock cash flow by the end of 2020.”

In particular First In, First Out (FIFO) is defined as an asset-management and valuation method within which assets produced or acquired first are sold, used or disposed of first and may be used by an individual or a corporation. Additionally, for taxation purposes, FIFO assumes that the assets that remain in inventory are matched to the assets that are most recently purchased or produced.

Accordingly, Kroger finished fiscal 2018 with 2,764 retail food stores, as compared with 2,800 year prior.

By understanding, the company operate stores under more than two dozen banners, which includes Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick ‘n Save, Copps, Metro Market, Mariano’s, Fred Meyer, Food 4 Less and Foods Co. Formats include supermarkets, marketplace stores, multidepartment stores and price-impact warehouse stores.


Seemingly, Kroger is on a quest to squeeze every penny that it can from its customers..

 Therefore, Kroger grocery stores have commenced charging a fee of those customers who request cash back with their purchases. This is applicable for any debit card cash-back transaction at the Cincinnati-based grocery chain. There will be a 50-cent charge minimum for now!

A spokesperson for Kroger continued to say; ”for any debit card cash-back transaction at the Cincinnati-based grocery chain, there will be a minimum 50-cent charge, Erin and Rolfes.”

Recently these fee are been implemented as follows: For cash-back options under $99.99, a fee of 50-cent service will be applied; For cash-back options between $100 and $150, a fee of $1.50 service will be applied. To receive between $150.01 and $2,000, a fee of $3.50 service will be applied. For cash-back options between $2,001 and $9,999, a fee of $6 service will be applied.

According to Amy McCormick a spokesperson with Kroger, currently the fee(s) are not been implemented in the Columbus division stores, and there is no ETA on when the fee will be introduced in Columbus, Ohio.

These additional fees are being implemented after the lead of Dillons, a Kroger-owned supermarket chain based in Kansas which began to impose similar fees back in March of this year.

Subsequently, Dillons is a grocery supermarket chain based in Hutchinson, Kansas, and is a division of The Kroger Company. Other banners under Dillon Stores Division include Gerbes in MissouriBaker’s in Omaha, Nebraska, and a Food 4 Less store in Fremont, Nebraska. Dillons operates grocery stores throughout Kansas with major influences in and around WichitaTopeka and Lawrence.

Predicated on information received, Dillons operates a dry grocery warehouse in Goddard, near Wichita, in addition to frozen foods and perishable warehouses in Hutchinson. A bakery manufacturing plant and dairy are also in Hutchinson. The dairy produces cultured dairy products and private-label milk for all Dillon’s stores.

On Tuesday, January 25th, 1983 – Holders of 84.6% of Dillon stock voted for to approve the merger between Kroger and Dillon. Also, an approval by a majority of Kroger stockholders was necessary. The deal was approved  by 98.1% of Kroger shareholders. Meanwhile, Kroger’s headquartered in Cincinnati, reported  sales of $11.2 billion and net earnings of $128 million in fiscal 1981.

Meanwhile Kroger has justified their actions by saying the fees will save customers a trip to the ATM. Many customers believes all of Kroger’s NEW fee, are enormously disingenuously introduced as a convenience.

Author: Ishton W. Morton

Formerly, Ishton W. Morton is an educator and promoter for community advocacy which includes creating programs and services, developing partnerships, and changing public policies, laws, and practices to improve the lifestyle of all people I’m still having an overwhelming desire to provide an Outreach Continuing Education process through this media.