US retailers are waging a promotional battle to win a share of the billions of dollars in tax rebates destined for US households as part of the $170bn (£86bn) federal economic stimulus package.

Kroger and Supervalu, the two largest traditional supermarket chains, will give customers who convert their tax cheques into gift cards an extra 10 per cent of the sum transferred, offering, for instance, a $330 gift card for each $300 in rebate or refund money.