Grocery Stores Are Adjusting Loyalty Reward Thresholds

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If you have felt like it takes longer to earn a free tank of gas or a $5 reward voucher recently, you are not imagining it. Quietly and without much fanfare, major grocery chains across the country are adjusting the math behind their loyalty programs. The “spend-to-earn” ratios—the amount of money you need to spend to unlock a reward—are shifting. This devaluation of loyalty points is a direct response to the stabilized but permanently higher baseline of food prices. As the cost of goods remains high, retailers are tightening their belts, and your rewards account is taking the hit.

The Inflation Correction

For years, the standard model was often “1 point per $1 spent,” with a $100 spend resulting in a specific reward. However, inflation broke this model. Because groceries cost 20% to 30% more than they did 5 years ago, shoppers were earning points 30% faster without actually buying more items. Retailers were bleeding rewards money simply because the price of eggs went up. To correct this, stores are raising the thresholds. What used to take 100 points might now take 150 points, effectively resetting the value of the reward to pre-inflation levels.

Shifting Focus to High-Margin Items

You will also notice that “base points” are becoming less valuable, while “bonus points” are exploding. Retailers are moving away from rewarding you for generic spending and starting to reward you for specific behaviors. You might get zero points for buying milk (a low-margin staple), but 5X points for buying the store-brand floral arrangement (a high-margin luxury). They are using the adjusted thresholds to manipulate your basket mix, guiding you toward the products where they make the most profit.

Expiration Dates Are Shrinking

Another subtle adjustment is the lifespan of your points. Points that used to last for 12 months might now expire in 3 months. This breakage—industry slang for points that expire unused—is a massive cost-saver for the store. It forces the shopper into a “use it or lose it” mentality, driving more frequent visits. If you do not shop often enough to hit the new, higher threshold before the shorter expiration date kicks in, the store effectively gives you nothing.

Fuel vs. Food Rewards

Many programs are decoupling fuel rewards from grocery rewards. In the past, points were often interchangeable. Now, retailers are creating distinct silos. You might earn “Fuel Points” that can only be used at the pump and “Cash Rewards” that can only be used in-store. This prevents the “double dip” and allows the retailer to adjust the value of each currency independently based on the fluctuating price of oil versus the price of corn.

Tiers for Big Spenders

To hide the devaluation from their best customers, stores are introducing “VIP” tiers. If you spend over a certain amount annually, you maintain the old, better-earning rate. If you are a casual shopper, you drop to the new, lower rate. This tiered system concentrates the benefits on the most profitable 10% of shoppers while cutting costs on the casual majority.

Adapting Your Strategy

The days of passively earning rewards are over. To maintain your savings rate, you must pay attention to the new math. Check the expiration dates, focus on 4X point promotions, and stop being loyal to a program that has mathematically decided to be less loyal to you.