Kroger and Shell Oil in deal for gas discounts

Cincinnati The Kroger Co. and Shell Oil are combining forces to offer gas discounts for grocery shoppers at Shell stations.

The deal is a big expansion of Kroger’s ability to use gas incentives, an increasingly popular industry tool for building loyalty among recession-squeezed households.

Beginning Monday, Kroger shopper card customers in five markets in Ohio, Tennessee and California can get at least 10 cents off a gallon at Shell stations after buying $100 in groceries.

Adding Shell to Kroger's own gas stations will triple the number of places Kroger shoppers can get discounts in those markets -- and provide them for the first time in the San Diego area, where Kroger's Ralphs stores don't sell gas.