Woolworths reviewing partnership with Qantas Frequent Flyer.

[opusman]

I've spent ~ $1200 at Woolies in the past 12 months, but with one or two exceptions all transactions were under $30. Obviously $1200 is not that much compared with some people, but I haven't swiped my card once in that time simply because there's no benefit to me. I don't have a car, don't need petrol discount, don't want "targeted offers", and unless I'm earning points I don't see why I should give them free marketing data.

 

[The Flying Brick]

If the Sunday 'Enhancement' goes as I expect than Woolies will be off my shopping list. Without EDR points there is nothing worthwhile for me in shopping at my local run down woolies stores with their inferior range, sub standard F&V and poorly lit aisles.
Occasionally the Woollies half price specials would entice me back to buy those items only but when I sit back and think about it the only reason I shop at Woolies is for the QFF points.

As a former Coles Myer shareholder, Coles was always the choice when they offered the shareholder discount card which gave 5% off at Coles.
But now, even without that discount I find that Coles has generally better prices, newer stores, trolleys that are new, wider ailes

 

[The Flying Brick]

And better lighting.
The difference is large enough for me to go back to Coles and I have no interest in their useless Flybuy program at all - so shopping their is a credit card point only exercise for me.

 

[drron]

If the Sunday 'Enhancement' goes as I expect than Woolies will be off my shopping list. Without EDR points there is nothing worthwhile for me in shopping at my local run down woolies stores with their inferior range, sub standard F&V and poorly lit aisles.
Occasionally the Woollies half price specials would entice me back to buy those items only but when I sit back and think about it the only reason I shop at Woolies is for the QFF points.

As a former Coles Myer shareholder, Coles was always the choice when they offered the shareholder discount card which gave 5% off at Coles.
But now, even without that discount I find that Coles has generally better prices, newer stores, trolleys that are new, wider ailes

Shopping at Woollies or Coles around the country I find sometimes Woollies and sometimes Coles that are the better stores.No consistency at all.

 

[MEL_Traveller]

As an aside, I wonder whether the gloss may have gone off qantas points from WW's point of view as a result of feedback on the devaluation of points, lack of flight availability and "simpler and "fairer".

I was thinking about this, and I wonder what it does for the QFFF brand?

QFFF is a premium product - premium airline, premium partners, premium products. Companies keen to offer QFFF points because they see them as a draw card and it benefits the image of both companies.

Now a major retailer has said 'hang on, maybe this is not such a great partnership'. I think that has to have some impact?

 

[DrA]

seems highly unlikely such a difference, what did you do, buy only what was on special at Coles

My nearest Woolies is a ~7 minute drive. The nearest Coles to where I live is a ~25 minute drive. The geographical disparities in pricing here are obscene - it's not just in the supermarkets.

 

[JohnK]

As the current EDR earn rate stands, any transaction under $60 at Woolies earns less 0.5c in value in the dollar, due to the $30 minimum spend that earns no points with EDR.

Flybys is only worth 0.5c in value for every $ spent, although at least for those small transactions you do actually earn something, while under the current earn rate at Woolies you earn next to nothing.

At the end of the day, EDR in collaboration with Qantas has the potential to be an outstanding loyalty program.
The issue has been Woolies long held obsession with the $30 minimum spend threshold and the company not effectively utilising the program more effectively, profiling its membership base would be a start to being more effective with points campaigns.

Just goes to show that people are obsessed with points.

You go shopping to buy things you need and anything else is a bonus.

I have read posts on AFF where people turn their nose up at EDR offers of 500 bonus points for $75 spend because the spend limit. Those same people run to Coles yet mention that Coles is up to $20 more expensive.

The maths does not add up. The obsession with generating points is out of control. If you are a small spender the Flybuys points are clearly not worth the time and effort unless there are a lot of discount offers. Your shopping should be driven by what is cheapest not who will give you 30c worth of points.

IGA has 24 pack of Pepsi Max for $10.99 and Farmers Union Greek style yoghurt for $4.99 this week. They usually have Greenseas tuna for 89c as well. Coles has sliced bread for 85c. Take the discount every time.

 

[exceladdict]

I was thinking about this, and I wonder what it does for the QFFF brand?

QFFF is a premium product - premium airline, premium partners, premium products. Companies keen to offer QFFF points because they see them as a draw card and it benefits the image of both companies.

Now a major retailer has said 'hang on, maybe this is not such a great partnership'. I think that has to have some impact?

I was thinking about writing a blog post on this topic - why airline FFPs are more attractive than non airline ones, but on top of qantas being Australia's premium airline, there's the allure of a holiday, general prestige of the airline industry, etc.

 

[MEL_Traveller]

I was thinking about writing a blog post on this topic - why airline FFPs are more attractive than non airline ones, but on top of qantas being Australia's premium airline, there's the allure of a holiday, general prestige of the airline industry, etc.

indeed!

The qantas email is interesting. Do we perceive it as QFFF 'looking after its members' (in trying to secure a new deal) or is it 'desperation'?

Fine line... but I think QF may have come down on the wrong side. Woollies hasn't even announced anything concrete and QFFF is out there sounding very needy.

 

[Cool Cat Phil]

I was thinking about writing a blog post on this topic - why airline FFPs are more attractive than non airline ones, but on top of qantas being Australia's premium airline, there's the allure of a holiday, general prestige of the airline industry, etc.

I have begun to wonder if I should write an obituary where Woolies have got it so wrong in the past 2-3 years.

Im hoping Woolies can turn it around, although ending a relationship with Qantas that does know a thing or two about Data analytics can actually help Woolies if they want to head back on track.

 

[ozflier]

Like everyone else, I'm looking for a potential alternative should the current arrangement cease.

The rumoured Coles/Etihad/Virgin arrangement which offers status credits as well as points is looking very attractive.

I have accrued many qantas points thru EDR but, as I fly little , my status level of qantas cardboard offers me zilch in terms of priority for seating , award availability etc.

 

[exceladdict]

I have begun to wonder if I should write an obituary where Woolies have got it so wrong in the past 2-3 years.

Im hoping Woolies can turn it around, although ending a relationship with Qantas that does know a thing or two about Data analytics can actually help Woolies if they want to head back on track.

And now that they have leveraged QFFF to build up EDR users and therefore their own database they might have a chance of doing it alone.

Going in to any US pharmac_/corner drug store, almost every special is "only for members". Wouldn't be surprised if aus goes in this direction.

 

[Ozgirl]

Without qantas points EDR is really nothing, occasionally might get a few cents off an item points(and bonus points are the only thing keeping me going).
I do find EDR are better than flybuys at using their data, EDR seems to be pretty spot on with their targeting of offers/recommendations. Flybuys just dump any offer/recommendation in a scattergun approach I find.

Both stores have finally started taregting me with gluten free offers... after 2 years they have finally paid attention to what i eat!

 

[coles525]

Like everyone else, I'm looking for a potential alternative should the current arrangement cease.

The rumoured Coles/Etihad/Virgin arrangement which offers status credits as well as points is looking very attractive.

I have accrued many qantas points thru EDR but, as I fly little , my status level of qantas cardboard offers me zilch in terms of priority for seating , award availability etc.

Currently silver with QF, booking a OW return trip (280k).

Been a member with virgin, but never earnt points until BP joined.

Now that flybuys have joined the ff program (been with FB since the start!), I signed up with etihad the day it was announced.

Especially if I can slowly earn SC to get silver / gold (lifetime i hope). Since QF is my main "bank", a backup is now etihad (every few years fly, but mostly just shop for SC).

 

[franjelley]

What a lot of visitors don't realise in USA, is that the 'members only' specials are illegal in many states, and you can demand it and get it. Mostly you get offered a card or the checkout person uses one that is on the till. I agree that Woolworths is testing this. I noticed this a year or two ago. They have a ''Ralph's'' look (calif). and no doubt our consumer laws are not as good as theirs, and there wont be the right to demand them. Legacy supermarkets are in trouble all over the world, and some surprising difficulties have been felt by Costco. Carrefour trimmed its Asian operations a few years ago.
I have owned both woolworths and coles shares in the past, but i decided about 10 years ago, that consumers were too fickle to be trusted and got rid of both.

And now that they have leveraged QFFF to build up EDR users and therefore their own database they might have a chance of doing it alone.

Going in to any US pharmac_/corner drug store, almost every special is "only for members". Wouldn't be surprised if aus goes in this direction.

 

[wandering_fred]

What a lot of visitors don't realise in USA, is that the 'members only' specials are illegal in many states, and you can demand it and get it. Mostly you get offered a card or the checkout person uses one that is on the till. I agree that Woolworths is testing this. I noticed this a year or two ago. They have a ''Ralph's'' look (calif). and no doubt our consumer laws are not as good as theirs, and there wont be the right to demand them. Legacy supermarkets are in trouble all over the world, and some surprising difficulties have been felt by Costco. Carrefour trimmed its Asian operations a few years ago. ...

And it seems in the USA, your membership number is tied to your telephone number. The more important thing is that the "member's discounts" there are substantially more than the few that I have seen in the WW stores here in Australia.

A couple of minor observations:
Almost all of the stores now show you at the bottom of the receipt, "how much you have saved by using the in-store specials". I consider it a failed shopping trip if that number is less than 10% of the bill.
The best deals are the "close-in best before date" (or even expired). IGA seems to have a slightly higher incident rate for those, at least in the items I buy. But equally the local IGAs supply local produce (though not to Japanese standards) at very low prices. It will be interesting to see if "Potato Shed" will make it outside of the Perth marketing area.
When I got to Australia more than 20 years ago, I was amazed at the price distributions on almost everything. If you didn't do your comparisons with at least three vendors, you could end up paying (more than) 50% more for the same products. Still happens though the internet seems to limit it somewhat.

Happy wandering

Fred

 

[dk4]

The more important thing is that the "member's discounts" there are substantially more than the few that I have seen in the WW stores here in Australia.

I don't shop at Woolies that much, but when I do I am astounded by the number of member only prices, it makes them look expensive to me (as I don't bother carrying my Everyday Rewards card because of the $30 start point, so when I go in - I don't get the good price, so I shop there less and less).

 

[whatmeworry]

Shopping at Woollies or Coles around the country I find sometimes Woollies and sometimes Coles that are the better stores.No consistency at all.

I generally find the run down stores are ex Franklins and Bilo's.

 

[serfty]

The FB/EY tie up is interesting - if I understand the documents correctly - once the [-]honeymoon[/-]promotional period is over, a FB member will earn 1 EY 'tier point' AND 1 FB point per $ spend. (Max 2.5K EY per calendar month)

The FB's can then be transferred to EY at 10K to 4K - so effective earn can be 0.4 EY per $.

That will shake up anything QF and EDR were negotiating.

 

[Mattg]

The FB/EY tie up is interesting - if I understand the documents correctly - once the [-]honeymoon[/-]promotional period is over, a FB member will earn 1 EY point AND 1 FB point per $ spend. (Max 2.5K EY per calendar month)

The FB's can then be transferred to EY at 10K to 4K - so effective earn can be 1.4 EY per $.

That will shake up anything QF and EDR were negotiating.

My understanding was that the 1 EY point per $1 referred to tier miles, which go towards earning status only. Am I missing something?