Kroger Pilots Gaming Machines in Store
Good writeup from DeAnn Campbell —
I struggle with moves like this to find new revenue streams. Kroger is piloting gaming machines in several stores in the Atlanta area, with questionable results. Kroger’s corporate stance is that the machines are walled off from main store areas, and some profits donated to Georgia’s HOPE scholarship and Pre-K programs. Sounds reasonable. But local communities are angry. Citizens from one Atlanta county are pushing local lawmakers to force removal of these machines. On a recent visit I noted the machines were only partly walled off and in full view of everyone at Kroger check-out. And while the machines technically don’t pay out in cash, they do pay out credit that is loaded onto a VISA gift card which is pretty close to cash.
kroger gaming kiosk
Consumers are not in favor of digital gaming machines in retail stores. Extensive surveys over the past 2 years show over 70% of consumers consider these games equivalent to gambling, too accessible to kids, and that they increase crime and make shoppers and employees feel less safe. While I understand the use of these machines in convenience stores, which have different consumer drivers, the neighborhood grocery store needs to be strictly PG. The whole premise of grocery shopping is that food is how consumers show their family love, entertain friends and care for their own wellbeing. Gaming machines send an entirely different message. If Kroger’s ultimate goal is to drive their home delivery business then this move might not matter as much. But given that the average cost of labor and delivery for home delivery is over 50% higher than the cost for an in-store shopper to fill their own basket, this seems like a questionable gamble (pun intended) that will undermine rather than boost company profit margins. Things that make you go “hmmmmm”. hashtagtopretailexpert; AAG Consulting Group
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More Resources
- Video https://www.fox5atlanta.com/video/1448880 — Kroger is facing outrage from some South Fulton residents for installing coin-operated amusement machines in its store on Old National Highway. Those living in the area accuse Kroger of targeting residents in the low-income area in order to generate revenue. Kroger maintains the machines, which dispense prizes in lieu of cash, are part of a pilot program and provide an enjoyable experience.