Grocery store rewards datapoints at the end of a lucrative few weeks
/The last few months have seen a more or less continuous stream of offers supercharging the value of grocery store manufactured spend:
Between September 4 and 10 Green Dot cards earned 5 points per dollar at Giant/Martin’s/Stop and Shop;
In quick succession Safeway offered $10 off $400 in Visa, MasterCard, and then again Visa gift cards;
Then Giant stepped up and offered triple points on Visa gift cards, double points on MasterCard gift cards, and 10 points per dollar spent on Happy gift cards;
And in the meantime, Safeway began offering 8 points per dollar spent on Happy gift cards (and unlike Safeway’s Visa and MasterCard offers, the coupon can be used an unlimited number of times on a single account).
Giant versus Safeway (1): Giant
Obviously a lot of people live in areas with convenient access only to Safeway or to Giant/Stop and Shop/Martin’s stores, so the decision of which offers to focus on has been made for them, but I do want to draw attention to a few important nuances for folks with access to both programs.
Giant’s program is the simplest, with points redeemable for either groceries or gas in 100 point increments, Each 100 points is worth $1 in groceries or a $0.10 per gallon discount on gas at participating service stations (i.e., worth $1 when filling a 10-gallon tank, $2 when filling a 20-gallon tank, etc).
Importantly, when redeeming points for grocery rewards, you do not need to redeem them or spend them in a single transaction, and you can make multiple redemptions in order to “fill up” your grocery rewards balance. As long as you shop at Giant at least every few months, this drastically reduces the risk of breakage, since you can fill up and spend down your grocery rewards balance however you choose.
Finally, there are three quirks of the Giant program that are worth being aware of:
First, in my experience grocery rewards cannot be used to pay for alcohol (this presumably applies to tobacco products as well, though that’s just a guess);
Second, they can’t be used to cover any taxes on the transaction. In my experience this creates the kind of bizarre situation where if you just buy fresh produce (untaxed here) then your grocery rewards can be used to cover your entire purchase, but if you throw in a pack of toilet paper (taxed here), you’re left owing some trivial amount on the transaction. Unless they’re getting a steep discount on interchange fees, it’s hard to imagine they’re paying Visa less than $0.20 on a $0.20 credit card charge. Obviously that’s not my problem, but it’s a reminder not to leave your wallet at home if you plan to purchase taxable items with grocery rewards. Your grocery rewards balance also can’t be used on gift cards.
Third, purchases that are fully covered by grocery rewards do earn additional flexible rewards points. This isn’t normally a big deal since unless you’re a caterer or something you probably aren’t earning more than a dollar or two a month in rewards from your regular grocery spend. Nonetheless, Giant does periodically offer bonus point earning on the purchase of various items, and the fact that you can redeem grocery rewards while earning additional flexible points may over time modestly increase the overall return on your manufactured spend.
It sounds obvious because it is, but also remember that when Giant is offering bonus points on gift cards with activation fees, the fees themselves do not earn bonus points, while when they offer bonus points on gift cards without activation fees, like the recent Happy gift card promotion, the entire value of the card earns bonus points.
Safeway versus Giant (2): Safeway
I started with Giant because their program is simpler, but obviously there are some times when and some people for whom Safeway is the only game in town, so it’s worth doing a quick look at “just for U” as well, if only by way of comparison.
While Giant flexible rewards points can be converted directly into grocery rewards, Safeway adds an intermediate currency: each time you earn 100 just 4 U points, they’re converted into what they call “Rewards.” Your Rewards balance can be “passively” redeemed by using it at participating gas stations (as with Giant, 100 points/1 Reward is worth $0.10 off per gallon), or “actively” redeemed for groceries (the equivalent of Giant grocery rewards).
Here’s the finicky part: 1 Reward (100 just 4 U points) is not consistently worth $1 off groceries, which makes it slightly more complicated to directly compare Giant and Safeway promotions. Take, for example, the current Giant promotion for 10 flexible rewards points per dollar spent on Happy gift cards, and the current Safeway promotion for 8 just for U points per dollar spent on the same cards. We know the purchase of a $500 Happy gift card will earn 5,000 flexible rewards points, worth $50 off a future shopping trip, while the purchase of the same card at Safeway will earn just 4,000 just for U points, worth 40 Rewards.
Redeemed one at a time, those 40 Rewards could be used for $40 off a grocery bill. But Safeway allows the redemption of multiple Rewards at increased value: 7 Rewards can be redeemed for $10 off, meaning 35 rewards can be redeemed for the same $50 in groceries, and the remaining 5 redeemed for another $7. The Safeway promotion is actually slightly more lucrative at the margin, despite the lower earning rate!
Obviously promotions at the two chains don’t always overlap, so it’s not like you always have the choice between more and less lucrative versions of the same promo, but when they do, make sure you’re calculating your return properly.
Finally, a few more notes on Safeway’s program:
Unlike Giant’s flexible rewards which allow you to flexibility build up and spend down a grocery rewards balance, Safeway Rewards redemptions are of the traditional coupon form of “$10 off your next purchase of $10 or more.” This is a time-honored method of encouraging customers to buy more than necessary in order to “make sure” their purchase triggers the coupon, but as long as you’re buying stuff you need at prices that are fair I don’t see any great harm in it.
Safeway’s terms exclude using Rewards for the purchase of “all fluid items in the refrigerated dairy section—including fluid dairy substitutes,” and states that “[s]ales tax payments and redemption value deposits are not purchases and are not eligible to earn points.” While I’m sure the tax and bottle deposit terms are enforced, I do not believe the exclusion of refrigerated liquid dairy products is, although if anyone knows for sure feel free to leave your datapoints in the comments.
Finally, Safeway Rewards can be redeemed for one-off free items. These are mostly generic or own-brand items (3 Rewards can be redeemed for a free 24-ounce “Signature Cafe Soup”) with value that mostly falls in line with the value when redeemed for groceries (the same 3 Rewards are worth $4 in groceries), but you might see some interesting high-value redemptions rotate through: 4 Rewards can be redeemed for $7 in the Meat Department, which gives a significantly higher value per Reward even than the maximum redemption of 7 Rewards for $10. But those high-value one-off redemptions are relatively rare, and maximizing your Rewards in multiples of 7 will typically be the most efficient way to redeem them.
Conclusion
Although I’ve jokingly referred to travel hacking over the years as a kind of extreme couponing, until this year I really never bothered to learn anything about the actual practice of couponing. Hell, I did most of my grocery shopping at places like Whole Foods that don’t even offer coupons!
But then we stopped traveling, and then I lost my job, and it turns out I was right all along: everything I ever learned about getting free travel applies equally well to getting free groceries!
On a more serious note, for folks who do have the ability to earn more in free groceries than they’ll ever want or need (while earning travel rewards on the side, of course), there are a lot of organizations, from food pantries to diaper banks, that are seeing more demand for their services than anytime since the Great Depression. In ordinary times those organizations benefit more from the cash donations they can use to buy deeply discounted goods from wholesalers, but most of them also accept in-kind donations, so it’s well worth considering calling around a few local organizations to see what they need most, and whether you can get it to them for free, whether it’s through Safeway, Giant, or whatever grocery store rewards program is operating near you.
