Ukrop’s cuts back on gasoline savings program
Ukrop's Super Markets Inc. today said it is slashing by 50 percent the amount of savings offered in its program to help customers lower their gasoline bills.
The chain's "fuelperks!" program, which began June 30 when gasoline prices were spiraling past $3 per gallon, offered customers a 10-cent-per-gallon discount for every $50 they spent at a Ukrop's store. That reward has been reduced to 5 cents per gallon, Robert S. Ukrop, the chain's president and chief executive officer, wrote in a letter to customers today.
"This adjustment coincides with the over 50 percent reduction in the cost of fuel since we began the program and still allows fuelperks! to remain the best program in the market to save on gas," Ukrop wrote.
Ukrop said the chain would not commit to extending the fuel-savings program beyond March 28.
Thirty gasoline stations in the region are participating in the program, which limits customers to purchasing a maximum of 20 gallons at the dicounted price.
The chain said customers have saved more than $5.1 million in gasoline costs since the program was introduced.
The chain said it would use other methods to save customers money, primarily through in-store price reductions on more than 2,500 items.
"We will be nimble and thoughtful as we seek ways to bring innovative services and programs to you," Ukrop wrote.
-- Joe Macenka
Reader Reactions
Ok time for a little math lesson:
A customer needed to spend $50.00 in order to save $.10 on gas. Factor in a maximum saving of 20 gallons = $2.00 per $50.00 spent. A 4% savings if you take the maximum.
Now take the $5.1 million that was saved in gas. For argument sake lets say that everyone maxed out the savings. So for that period customers conservatively spent $127.5 million at Ukrops. Not to mention the the additional income not recorded towards fuel perks (I was guilty of forgetting my card and finding it too much of a hassle to get a temp).
The lesson here is what were we really saving? My car holds 12 gallons max- when I fill up it is about 10 gallons. So even to save a $1.00 a gallon ($10.00 max) I would have spent $500.00 at Ukrops. Any business that would eagerly give me $10.00 if they knew I would spend $500.00 there would find this to be the best return on their advertising ever.
Eleazar, I agree Ukrops is not as good as it used to be, but it’s still better than most. And the FuelPerks program is still as good as the one at Kroger and I’m able to use it at many gas stations, not just the Kroger station, which I neither live nor work near. True, the profit lines their pockets, but they are pretty good about contributing to the community. And if it were public share-holder owned, I’m sure they would have to cut even more. And if it were owned by a private equity firm, they probably would have cut pretty close to the bone by now.
Transplant, I agree with your statement, “If Ukrop’s introduces and later eliminates its fuelperks program It is their business decision,“ but you must also agree that where I shop is my business decision. I didn’t say that FuelPerks was a constitutional right or entitlement, but to me, the value of the program has been reduced by half.
I also agree with brookspd to an extent, but the Ukrops exploited people’s misery over gas prices and that does make them opportunists. I personally think that their “customer service and experience” are not as good as they were; They refuse to use technology to compensate for people who forget their “valued customer cards,“ delaying six people in line till the miscreant can get his/her number from customer service; refuse to permanently station baggers on the express lines and refuse to put a milk cooler in the front of the store. Last year, they cut the percentage mark down on expiring goods from 50% to 33%. Bottom line, they’re more concerned about the bottom line, which, being a privately held firm, goes directly into their own pockets.
Ukrops is a business, not a charity. In a free market, they are SUPPOSED to try to drive customers into the store and yes, even make a profit. That hardly makes them opportunists. For the products my family buys, Ukrops is still cheaper than Kroger and very competitive with Food Lion. Not to mention locally-owned and good community members. Yes, I’ve noticed that the lines are longer, they stock during shopping hours, and the grill is closed during the slower hours. But Ukrops is being squeezed like everyone else and I realize that they have to cut somewhere. Their customer service and experience are still better than at the other biggies.
On a side note, the Kroger and Ukrops I reference are both located the Gayton Crossing shopping center… not sure how others that are farther apart might compare. I would imagine being back to back (literally) would require them to be more competative with each other than stores several blocks apart.
RACER2- I was also concerned about the cost of groceries so about two months ago I did a little “experiment.“ Each week I went to a different store and bought the exact same items, saved the receipts, and compared. Results are: Food Lion was the least expensive but had the least brand choices and least fresh produce. Ukrops and Kroger were within pennies of each other, Kroger being the more expensive of the two. While Ukrops was less expensive, they also had less brand choices than Kroger, but more ready made foods. No surprise, Whole Foods was the most expensive, but had the freshest foods. I’ve sense repeated my little trial with just Ukrops and Kroger and Ukrops is consistently less expensive or a few cents more if I decided to choose a more expensive brand, cut of meat, etc.
So, to sum it up, the perception that Ukrops is outrageously priced is completely false.
As for the fuel perks, it’s perks, not requirements. They didn’t have to offer it in the first place and they don’t have to continue if they don’t want to (especially since the premise was gas prices- which is no longer the issue it was 6 months ago). I don’t see how it’s taking advantage of you since you have the choice to shop there, the choice of what to buy and the choice to use your perk points. Why do we continue to be such a “gimme” society?
I’ve got enough now for a free tank anywhere in town. Guess I better use it or lose it. Does anyone know if this affects the current discount?
I think this was a great idea by Ukrops, however, I am not a Ukrops shopper. There prices are too high and I simply cannot afford to shop there. Honestly, I would not even shop there if the prices were competitive.
“But I do wonder if those same people would have been better off at the end of the day if they had purchased their groceries at a food store that is more price competitive.“ Where? Walmart? Food Lion? Kroger? Check out prices carefully as loss leaders alone are not the total sum of savings in my opinion.
I guess it is a good thing that people were able to save $5.1 million on gas by purchasing groceries at Ukrop’s.
But I do wonder if those same people would have been better off at the end of the day if they had purchased their groceries at a food store that is more price competitive.
Love Ukrop’s but can’t afford to shop there anymore. . .
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