Kroger Revives Paper Coupons in a Rare Back-to-Analog Move

Kroger is bringing back paper coupons as part of a broader effort to simplify promotions. The grocery store giant aims to make its offers less complex, making it easier for customers to redeem them. This move is a rare return to an analog approach in an era dominated by digital coupons and online shopping.

Kroger Co. (KR) has reintroduced paper coupons at its stores, signaling a strategic shift towards simplifying promotions and appealing to a broader customer base. This move comes as the company seeks to cater to older, less tech-savvy, and low to middle-income shoppers who have felt disenfranchised by the shift to digital coupons Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1].

The decision to bring back paper coupons is part of Kroger's broader effort to make its offers less complex and more accessible. According to interim CEO Ronald Sargent, the company has seen a "lift" in the number of items sold since reinstating paper coupons Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1]. This is particularly notable as the number of redeemed coupons, both digital and analog, has been on the rise since the early 2020s, according to CapitalOne research Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1].

Kroger's move is a rare return to an analog approach in an era dominated by digital coupons and online shopping. While many consumer packaged goods brands and their customers have migrated to e-coupons, the demand for paper coupons remains strong among certain segments of the population Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1]. Kroger's decision to bring back paper coupons underscores the company's commitment to meeting the needs of all its customers, regardless of their technological proficiency or income level.

The company's focus on simplifying promotions is part of a broader strategy to adapt to changing consumer behavior. Higher-income households are splurging on premium products and buying large packages, while low and middle-income shoppers are making smaller, more frequent trips to the store, choosing private label options, and relying more on coupons and deals Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1]. This shift in consumer behavior is driven by economic uncertainty and the desire to maximize savings.

Kroger reported $33.9 billion in sales in the second quarter, roughly in line with sales a year earlier. The company's adjusted earnings of $1.04 per share, compared to $0.93 last year, reflect the company's ability to navigate the current economic climate and adapt to changing consumer preferences Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1]. Shares in the 2,700-store chain have climbed since late 2024 when a court nixed Kroger's plans to merge with Albertsons (ACI), and the company's stock has increased about 11% so far this year Kroger Has Brought Back Paper Coupons—And Shoppers Are Into It^[1].

As Kroger continues to adapt to the evolving retail landscape, its focus on simplifying promotions and catering to a broader customer base is likely to be a key driver of its future success. The company's ability to balance the needs of different customer segments and respond to changing market conditions will be crucial in maintaining its competitive edge.