Kroger‘s Stand-Out Employee Benefits: An Inside Look

As the nation‘s largest supermarket chain, Kroger is a household name beloved by millions of shoppers for its convenience, quality, and value. But what many customers may not realize is that the same qualities that make Kroger a great place to shop also make it a great place to work, thanks to an industry-leading employee discount and benefits package.

Sizing Up the Kroger Workforce

Before diving into the details of the perks and privileges that come with a Kroger employee ID badge, it‘s worth noting the sheer scale of the company‘s workforce. Kroger is the fourth largest private employer in the United States, with nearly 500,000 associates across its family of brands as of 2021.

That includes not only the flagship Kroger stores, but also:

  • 132 Fred Meyer stores
  • 106 Ralphs stores
  • 134 Fry‘s stores
  • 188 Harris Teeter locations
  • 114 Smith‘s stores
  • 106 King Soopers and City Market stores
  • 100 Dillon Companies stores (Dillons, Baker‘s, Gerbes, and others)
  • 52 QFC stores
  • 35 Roundy‘s stores (Pick ‘n Save, Copps, Metro Market, Mariano‘s)
  • 256 jewelry stores under banners like Fred Meyer Jewelers and Littman Jewelers

All told, Kroger employs 1 out of every 110 working Americans across its vast portfolio of nearly 2,800 stores and dozens of manufacturing and distribution facilities. As a company, Kroger has added over 100,000 new jobs during the past decade, reflecting its continued growth and resilience even amid challenging times for the broader retail industry.

The Most Valuable Card in Your Wallet

For Kroger associates, the most coveted employee benefit is undoubtedly the generous discount on store purchases. All employees, from part-time courtesy clerks to full-time department managers, are eligible for:

  • 10% off all eligible in-store grocery purchases
  • 15% off all eligible in-store general merchandise purchases (including home goods, apparel, electronics, toys, and more)
  • 10% off Kroger Specialty Pharmacy prescriptions
  • 10% off at in-store Starbucks locations

The discounts are valid on all items in Kroger stores as well as its family of subsidiary retailers, with the exception of alcohol, tobacco, gift cards, lottery tickets, and other legally restricted categories. Use of the discount benefit for resale purposes is strictly prohibited.

During special events throughout the year, like the Independence Day and Christmas holidays, Kroger boosts the discount to a full 20% off eligible purchases.

For employees, this means significant savings on everyday items as well as splurge purchases. Using the Kroger employee discount on a $100 weekly grocery trip translates to $520 in annual savings, while stocking up on $500 worth of holiday gifts at 20% off means an additional $100 staying in your pocket.

But the discount isn‘t limited to just Kroger brand products. It includes the full range of Kroger‘s thriving private label portfolio, which spans categories across the store:

Kroger Brand Product Categories
Kroger Pantry staples, dairy, frozen foods, produce, meat, household essentials
Private Selection Premium deli items, baked goods, sauces, salsas, culinary specialties
Simple Truth Natural and organic grocery items, snacks, cleaning products, vitamins
Home Chef Meal kits, heat-and-eat entrees, appetizers, sides, desserts
Comforts Baby care products, diapers, wipes, formula
Luvsome Pet food and treats, toys, accessories
Big K Sodas and other beverages
Dip Apparel essentials like socks, underwear, tees, loungewear
HD Designs Small kitchen appliances, bedding, bath, decor, furniture

All told, the Kroger family of brands accounts for over 30% of total company sales (over $40 billion annually), thanks to a combination of quality, value, and innovation that results in high customer loyalty. By extending the employee discount to its high-performing house brands, Kroger is able to deepen that loyalty and turn its workforce into true brand ambassadors.

"The employee discount is honestly one of the best parts about working at Kroger," says Rico, a produce clerk at a Ralphs store in Los Angeles. "I‘ve turned my family and roommates on to so many Kroger brand products that are just as good as the big name brands. My manager jokes that I should be getting a commission from all the Private Selection chips and Simple Truth salsa I‘ve gotten people hooked on."

Sharing the Wealth

The value of Kroger‘s employee discount is enhanced by the fact that it can be shared with immediate family members of associates. Employees can request up to three additional Kroger Loyalty Cards linked to their accounts for use by spouses, parents, siblings, children, or domestic partners.

This perk alone can represent hundreds if not thousands in annual savings for the households of Kroger associates, many of whom are the primary grocery shoppers for multi-generational families. Given that the average American household spends nearly $5,000 per year on food at home, according to the Bureau of Labor Statistics, a 10% discount can put $500 per year back in the pockets of employees and their families.

Importantly, Kroger‘s inclusivity in extending the discount to domestic partners and family members outside the traditional nuclear family reflects the company‘s progressive values and commitment to diversity.

"As a single mom, being able to use my employee discount for my aging mother‘s groceries has been such a blessing," says Shanice, a cashier at a Kroger in Cincinnati. "She appreciates the Kroger brands as much as I do, so we always compare notes on what Private Selection or Simple Truth products are on sale that week. Those savings add up fast."

The Complete Benefits Package

While the employee discount may get the most fanfare and attention, Kroger‘s benefits package is equally noteworthy for its comprehensive support of associates‘ health, wellbeing, and quality of life. Benefits include:

  • Multiple medical plan options, including PPO and high-deductible health plans with free preventive care and telemedicine
  • Two dental plans with access to a large national network of providers
  • Vision insurance covering eye exams, glasses, and contact lenses
  • Company-paid basic life insurance with option to purchase additional coverage
  • Short and long-term disability coverage
  • Flexible spending accounts for health care, dependent care, and transportation needs
  • Generous paid time off program with vacation, sick, and personal days
  • 401(k) retirement plan with 100% company match on first 5% of employee contributions
  • Employee stock purchase program with 15% company match
  • 10% discount on Home Chef meal kit subscriptions
  • Employee assistance program with free mental health counseling, legal advice, and financial planning services
  • Tuition reimbursement up to $3,500 per year for degree/certification programs related to career growth
  • Scholarship opportunities for employees and dependents
  • Discounts on fitness memberships, cell phone plans, event tickets, and more through company perks portal

Kroger also stands out as one of the only major retailers to still offer a pension plan, which provides eligible retirees with monthly income for life based on years of service and compensation. While the plan has been closed to new hires since 2017, Kroger continues to fund it to the tune of over $1 billion per year, demonstrating a long-term commitment to its workforce.

Doing Well by Doing Good

Kroger‘s generous pay and benefits are an essential ingredient in its recipe for business success and competitive edge in the cut-throat grocery industry. With a turnover rate of just 23%, well below the retail industry average of nearly 60% according to the National Retail Federation, Kroger boasts one of the most experienced and tenured workforces in the business.

That stability and loyalty pays off in the form of excellent customer service, operational efficiency, and institutional knowledge, all of which contribute to Kroger‘s leading market share and consistently strong financial performance. Kroger has achieved over 50 consecutive quarters of positive identical supermarket sales growth, a remarkable streak in the volatile world of retail.

"In this business, experienced and engaged employees are your greatest asset and competitive advantage," says Mary Ellen Andress, a 35-year grocery industry veteran and former executive at Safeway. "By investing in benefits that meaningfully improve workers‘ lives, Kroger is able to attract and retain top talent, reduce turnover costs, and create a virtuous cycle of employee and customer loyalty. It‘s a win-win-win."

Kroger employees seem to agree. In a recent company-wide survey, 88% of associates said they are proud to work for Kroger, and 84% said they feel supported by their managers and have opportunities to learn and grow.

Stepping Up in Challenging Times

Like all essential businesses, Kroger has faced unprecedented challenges during the COVID-19 pandemic, with associates working on the front lines to keep communities fed and safe under difficult circumstances. The company has risen to the occasion by investing over $1.5 billion to reward and protect its associates, including:

  • $100 million "Thank You Pay" bonuses, paid in $400 installments throughout 2020
  • $130 million in paid time off for associates infected or quarantined due to COVID-19
  • Ongoing $100 store credits and 1,000 fuel points bonuses
  • Free COVID-19 testing for associates, including weekly self-administered tests
  • Access to mental health resources and virtual counseling sessions through employee assistance program
  • Installation of plexiglass partitions, floor decals, and physical distancing signage in all stores
  • Distribution of masks, gloves, and protective equipment to all associates
  • Increased cleaning and sanitation protocols across all facilities

These emergency investments built on Kroger‘s pre-existing industry-leading sick leave and paid time off policies, which provide a minimum of two weeks‘ paid leave for all associates.

But Kroger‘s commitment to supporting the greater good through its employees doesn‘t end there. In the wake of the racial justice protests of 2020, Kroger established a $5 million Equality Fund to support impactful initiatives to promote diversity, equity, and inclusion in the workplace and beyond.

The company also implemented a new training program to promote inclusive practices across the business and created a Diversity Equity & Inclusion Advisory Council to guide ongoing efforts. In 2021, Kroger earned a perfect score of 100 on the Human Rights Campaign‘s Corporate Equality Index for the third consecutive year, recognizing its support of LGBTQ+ employees.

The Intersection of Value and Values

So what does all of this mean for Kroger shoppers? Ultimately, a company‘s treatment of its employees is a powerful reflection of its values and priorities. In the case of Kroger, a long track record of investing in its people has fostered a culture of mutual respect, customer focus, and community stewardship that directly translates to a better shopping experience.

When customers walk into a Kroger store, they can expect to encounter experienced and knowledgeable associates who will go the extra mile to assist them and answer questions. They will find shelves neatly stocked with an appealing assortment of high-quality products at competitive prices.

At checkout, they will interact with a cashier who is motivated and empowered to deliver great service because they feel valued by their employer. And then as they walk to their car, they may cross paths with an associate retrieving shopping carts in the parking lot who, whether with a smile or friendly wave, conveys a sense of genuine appreciation for their business.

"Shopping at Kroger feels different from other grocery stores," says Laura Richards, a Cincinnati-based sales executive and longtime Kroger customer. "The employees always go above and beyond to help me find what I need, and you can tell they really take pride in their work. It‘s clear Kroger treats them well because that positive energy shines through in every interaction."

For all the valid concerns about corporate greed and income inequality, it‘s refreshing to see a major employer like Kroger put its money where its mouth is when it comes to valuing and rewarding its frontline workforce. By sharing its success with employees through generous wages, benefits, discounts, and support programs, Kroger has cultivated a loyal, dedicated, and engaged workforce that in turn fuels its continued success and leadership in the marketplace.

It‘s a virtuous cycle that benefits all stakeholders—employees, customers, vendors, shareholders, and communities. And for shoppers, it means that every trip to Kroger not only provides value and convenience, but also supports a company that is doing well by its people and the greater good.

So the next time you‘re filling your cart with Kroger brand products to maximize your own grocery budget, know that you‘re also supporting a culture of employee appreciation and shared prosperity. Because at Kroger, taking care of employees and taking care of customers are one and the same.