Woolworths loyalty program fails to gain consumer traction

Rachael Micallef
By Rachael Micallef | 14 April 2016

Woolworths’ newly launched rewards program has failed to gain traction with consumers, according to reports in the Sydney Morning Herald.

The supermarket giant launched its Rewards Loyalty Program in October last year after scrapping its long running Woolworths Everyday Rewards program. 

Fairfax reports that consumers have failed to warm to the new system, claiming they are earning less than they would under the previous Everyday Rewards scheme as rewards now only accrue on selected products rather than every dollar above $30 spent in stores.

It has suggested the poor take-up may be contributing to low store sales growth and market share losses in Woolworths' food and liquor unit in a challenging retail environment.

At the time of launch, the scheme was subject to backlash on Woolworths' social media channels for an initial decision to 'de-couple' the scheme with Qantas reward points. That change was subject to a U-turn by both businesses

The news follows big changes for the supermarket giant, which is currently looking to offload its hardware business, Masters, due to market pressures.

Woolworths has also seen a number of changes in senior management, including the appointment of a new CEO, Brad Banducci, in February this year. 

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