By PETER HEIMDAHLLos Alamos
We were thrilled when Kroger decided to invest in a beautiful Smith’s Marketplace in Los Alamos.
We spend $8,000 a year there using our only credit card, a United Airlines Visa. We are on a fixed income and we count on the miles we earn at Smith’s to be able to travel. However, Kroger has engaged in a childish game of brinkmanship with Visa over fees, and Smith’s has now banned Visa credit cards.
We, along with many other Visa card holders are outraged at this brazen example of corporate arrogance. Visa is no saint, but it seems clear to us that Kroger is the main culprit in this situation. Kroger lamely claims the ban is to keep prices low. Sorry, Kroger, but your prices are NOT particularly low. Walmart and Aldi, for example DO have genuine low prices and they are happy to accept Visa.
Kroger recently had an earnings “miss” and its stock tanked. But credit card fees had little to do with the profit decline. It is obvious that Kroger’s financial difficulties are caused by giving a blind eye to customer needs. For example, a very annoying problem is that Smith’s is chronically out of stock on many items. This happens not just with sale items but with ordinary basics like broccoli and bananas. This long term condition has earned the store the nickname “Empty Shelves Smith’s.”
Repeated complaints are ignored. Kroger’s profit would improve greatly if they focused on providing adequate inventory for customers to buy, instead of picking petty spats with credit card issuers.
Kroger has irresponsibly urged customers to use debit cards and checks instead. Debit cards should not be used for anything other than withdrawing cash, as they lack the extensive consumer protections that credit cards offer. More customers writing checks? Smith’s often understaffed checkout lanes already have customers fuming. Consider the new, frustrating delays caused by the agonizingly slow check writing process.
It is important to the public interest that Kroger does not get away with this stunt. Even holders of other card brands should be alarmed. Your card could soon be on Kroger’s hit list. Apparently Kroger doesn’t listen to customer complaints, but maybe they will pay attention if customers avoid the store. Although Smith’s is the only supermarket in Los Alamos, we refuse to be held hostage. With a little planning, it is no problem to shop elsewhere. Below is a guide. I believe all happily take Visa credit cards (and I’d wager they pay higher fees than Kroger).
- Los Alamos Co-op: the Co-op is a great place to shop for high quality fresh food. It also has a deli.
- L.A. Liquors: in addition to alcohol, this retailer offers a nice selection of food from India.
- Shell Oil in Los Alamos: their prices are competitive. Also, they have free air—Smith’s charges for air.
- Nambe Drugs of Los Alamos: this small but customer friendly drugstore takes most insurance plans. When Smith’s Pharmacy was out of stock (surprise!), we were easily able to get flu shots here.
- CB Fox and Bealls: for clothes and home goods.
- Metzger’s: this well equipped hardware store also has many household items.
- Sprouts and Albertsons: these supermarkets are conveniently located in the DeVargas Mall on the north side of Santa Fe, a quick 32 mile drive.
- Pojoaque Supermarket: this is a sweet, full service market just 17 miles away that would love to have your business.
- Kokoman Liquor: this amazing outlet in Pojoaque is like something out of a Harry Potter movie. Seemingly a tiny shack, when you enter, it morphs into a huge cavern jammed with an incredible smorgasbord of beer, wine and spirits. And way cheaper than Smith’s.
- Food King: this is a new, interesting discount supermarket 19 miles away in Espanola.
- Amazon: Kroger’s intransigence inspired me to check out Amazon’s grocery offerings. Kroger is currently the nation’s largest grocery chain. But Amazon is hellbent to become dominant in the grocery field. Amazon does not offer fresh food delivery in Los Alamos (yet!), but offers an enormous assortment of groceries on its website. I can get every non fresh item that Smith’s offers (from toilet paper to organic coffee), and Amazon’s prices are usually significantly lower, especially if you use their “Subscribe and Save” feature–all delivered free to my door. What are you thinking, Kroger?! Your ill advised slap in the face to your regular customers will likely send thousands of new clients into the welcoming arms of your most ferocious competitor. And you can bet that fanatically client-focused Amazon will not tolerate empty shelves.
Adios, Smith’s Marketplace.
