'Perks' program tackling food bills: Giant Eagle's new offer: Buy gas, save on your groceries

Nov 06, 2008 (The Columbus Dispatch - McClatchy-Tribune Information Services via COMTEX) -- KR | Quote | Chart | News | PowerRating -- Buy groceries, save on gasoline.

Several area grocery retailers use that enticement to encourage consumers to shop in their stores. Now, Giant Eagle is flipping the program, offering grocery discounts to those who buy gas at its GetGo stations.

Starting today, those who have a Giant Eagle Advantage Card can earn a 1 percent discount on groceries for every 10 gallons of gas they buy at GetGo. Gas purchasers can earn up to 20 percent off their grocery bills, up to a bill of $300 in a visit. The food-perks discount expires after 90 days.

The program is being rolled out at Giant Eagle's 24 Columbus-area stores as a test. If central Ohioans like it, the Pittsburgh-based company plans to introduce it in its Pennsylvania, northern Ohio, West Virginia and Maryland stores "really quickly," company Chairman and Chief Executive David S. Shapira said.

"People are increasingly finding that their budgets are strained; that is what the whole (presidential) election was about," Shapira said. "We always try to be sensitive to the needs of our consumers."

The program is a "natural evolution" of the company's fuelperks program, which allows shoppers to earn a 20-cents-per-gallon discount on gas for every $50 spent in a Giant Eagle store, he said.

Consumers have generated $422 million in fuel savings in the past year in the program, the company said.

"People need food and gas. This program allows them to save on both the things they need most," Shapira said.

He said Giant Eagle offsets the cost of the program by the increase in shoppers. "If they like it, they will respond more by shopping our gas stations and our markets."

Giant Eagle has 21 GetGo stations.

Competing grocers throughout central Ohio also offer gas discounts; none has announced a food discount similar to the Giant Eagle program.

Kroger spokeswoman Amy Barlow declined to comment on Giant Eagle's new program.

"Everyone is doing new programs," she said.

Barlow said Kroger continues to focus on its Fuel Plus program, which allows customers who spend a certain amount of money in its stores a discount of up to 50 cents off per gallon on four fill-ups per month.

She declined to speculate as to whether Kroger would adopt a plan similar to Giant Eagle's. "I can't speak for things we may do in the future."

Giant Eagle already has tested the program with a handful of shoppers in central Ohio, and they say they like the program.

"The savings are significant," Melissa Lemery said. The West Side resident has earned 3 percent in savings in just three weeks.

"I'm already a fuelperks person, so when I heard about this new program, I was excited to join," Lemery said. "Knowing that I can save money for every 10 gallons of gas that I buy makes me more likely to shop exclusively at Giant Eagle."

Likewise, Cheryl Keller of Pickerington has earned 3 percent in savings in two weeks. She said she's waiting to earn more so she can spend the savings on her holiday food shopping.

"In the last year, I've saved $1,500 on gas purchases with my fuelperks, and I can't wait to do the same on the food perks program," she said. "This program says Giant Eagle wants me as a customer, and I believe it."

tturner@dispatch.com

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