Update 2: They have changed their minds entirely and now points can be used for these purchases. The following e-mail was sent out:
Attention Kmart Shoppers (Sears too) !!!
You Screamed, We Listened!
You can once again redeem your points on all of your grocery, home essentials and health & beauty products.
Reach out to me for assistance placing your orders for all your favorite products.
Update: This is for online orders only, in store still works.
Shop Your Way Rewards points are no longer usable on products found in Grocery and Health & Beauty categories. Reader RM saw a message stating that there points could not be used for these products yesterday, but it’s not clear if this ban has been in effect for longer. Earlier this year redeeming SYWR points stopped counting towards the $59 free shipping threshold. Sears is filing for bankruptcy, so if you’re still earning these points I’d recommend always redeeming them as soon as humanely possible as it’s only a matter of time until they are worthless.