Interesting times ahead...
Don't know if I can see Coles completely scrapping FlyBuys, for 2 reasons I have seen from the EDR website community blog/forum (of all places!) - thye won't make their 'mistakes'
1) Lack of knowledge of how EDR/QFF works - no linking of multiple EDRs to 1 QFF - Coles doesn't have this issue - all points to FlyBuys, all redemption (at a poor rate) through FlyBuys
2) $30 min before 1 QFF/$1 - 'almost' any purchase at Coles will earn something (min $5?)
I can see FlyBuys branding staying due to its significant market penetration as it is. I can see an optional 'sweep' of FlyBuys points to 'Velocity' or whatever it is known as then, hopefully with a satisfactory earn rate. I can also see bonus offers through targeted e-mails becoming more common as well.
My habits won't probably change, I shop on conveinience, however, I do buy a lot of Shell petrol so virgin points there would be nice!
Unrelated, I'd like to see Virgin Blue, (or whatever the new name is) ditch Velocity branding and move to 'Flying Club' (ala VS) - I like this branding, and also think that to compete with QFF, they need the reference to 'flying' in their loyalty program.
Everyone knows 'Frequent Flyer' means Qantas, so Virgin need something like this, where instant recognition of loyalty is linked to brand - Velocity doesn't cut it