I went with my wife to the grocery store yesterday, and when we made it to the checkout line, there was a large display selling financial products. I was a bit surprised to see a grocery store selling financial products. I assumed they were there from a third party and the store was paid a fee for setting up the display. But I was wrong. These products were sold by the store under their own brand.
Kroger has a finance site where they sell a multitude of financial products ranging from loans (credit cards, mortgages, HELOCs), to insurance (auto, home, life, renters, identity theft, specialty, and even pet insurance), and gift cards.
I took one of each of the brochures so I could read them more closely; don’t worry, I will recycle them when I am finished with them. After reading the details, it seems that most of the financial products (loans) are underwritten by divisions of Kroger, and most of the insurance is offered through a third party. My guess is that it is easier to get into lending than insurance.
Would you buy financial services through your grocery store?
Grocery stores are offering a wider variety of services nowadays. Many have banks and ATMs within their store, floral and balloon shops, pharmacies, bakeries, photo development, and specialty liquor and tobacco sections. They also offer seasonal items such as school supplies and Halloween costumes. Grocery stores are almost like mini Wal-Marts. Is moving into financial services a logical jump?
Personally, I want to shop around and buy my insurance based on the best deal. But my guess is that the busier (or lazier) people become, the more likely Kroger and other stores will make a lot of money through these types of offerings.
Reader Poll: Would you buy your financial services from a grocery store?
- No way! (50%, 63 Votes)
- Maybe. It depends on how it compares to my current company. (37%, 47 Votes)
- I do all my grocery shopping at the Kwik-E-Mart. (7%, 9 Votes)
- Yes. I’ll take a loaf of bread and some life insurance. (6%, 8 Votes)
Total Voters: 127 (poll has ended – thanks for participating!)