Experts expose truth behind Woolworths Rewards program

As we navigate the aisles of our local supermarkets, many of us clutch our loyalty cards with the hope of saving a few dollars on our weekly shop.

The Woolworths Everyday Rewards program is one such scheme that has found its way into the wallets of countless Australians, promising savings and perks with every scan.

But before you swipe your card again, it's time to take a closer look at what you're really signing up for.



Experts are sounding the alarm on points-based systems like Woolworths Everyday Rewards, cautioning that they may be hindering customers from seeking out the best deals.

These loyalty programs are designed to keep shoppers returning to the same stores by offering points for purchases, which can later be redeemed for discounts or other rewards.


shutterstock_1396020890.jpg
Experts warned about the potential pitfall of supermarket reward schemes. Image source: Shutterstock



While the idea of earning points with every shop sounds appealing, experts said it is essential to understand the potential pitfalls.

The Woolworths Everyday Rewards program allows members to collect points at a variety of participating stores and partners, including Woolworths, Metro, BWS, BIG W, and even energy providers like Origin Energy.



Once you've accumulated 2,000 points, you're faced with a choice: shave $10 off your next shop or convert your points into 1,000 Qantas points. It's a tempting proposition, but is it really worth it?

Finance Editor Gemma Acton highlighted the downsides of such programs on The Morning Show, noting that Australians tend to overspend when enticed by personalised offers.

She said: ‘Seven out of 10 Australians belong to two of the country’s biggest rewards programs—you have to spend roughly $2,000 to get $10 off your grocery shop.’

‘On the one hand, you do get stuff. On the other hand, we do tend to overspend.’

‘If we get sent an email saying, “I think you’d love this special shampoo we picked out for you”, you’re more likely to buy it when you may not have before—it stops you shopping around,’ she explained.



The lure of collecting points can lead shoppers to make purchases they wouldn't have otherwise considered and to shop at places where prices may not be the most competitive.

For example, you might choose Woolworths over ALDI for your milk, simply to earn points, despite the latter potentially offering a better price.

Moreover, Acton emphasised that enrolling in the rewards program means customers are providing personal information.

‘I think most people know when we buy something (shops) collect the information, store it and build a profile on us,’ she explained.

‘But these programs have lots of partners. So, you might think, “It’s fine, I don’t mind if my supermarket knows what I buy in my weekly grocery shop” but they’re giving the information to insurance companies, credit card providers.’

‘The shared data means they can build up an accurate profile of you.’



This concern was echoed by the Australian Competition and Consumer Commission (ACCC), which recently expressed worries in its interim report on the Digital Platform Services Inquiry, particularly regarding the data collection aspect of these programs.

The report suggested that while consumers may enjoy the benefits of discounts and offers, they may also be unwittingly giving away valuable personal information.


shutterstock_582043573.jpg
Acton said that the allure of loyalty points possibly deters shoppers from choosing cheaper grocery options. Image source: Shutterstock



Acton also pointed out: ‘The ACCC consumer watchdog told us yesterday the average privacy policy we get these days takes 29 minutes to read, and that’s just reading without stopping to understand it.’

‘They said if you were to read every privacy policy you come across in a month, it would take two full days and two full nights to get through.’



Woolworths, however, stands by its program, stating that if used effectively, it can lead to significant savings.

A spokeswoman stated: ‘Every month, more than one million members enjoy $10 or more off their shop and last year, members who banked their points for Christmas saved on average $100 to spend over the festive period.’

‘We have also launched a subscription service, Everyday Extra, which can save our members up to $100 a month across Woolworths and BIG W.’

‘As well as 10 per cent off their shop once a month at Woolworths and BIG W, Everyday Extra subscribers collect two times points on every transaction, helping them earn rewards points at a faster rate, leading to more savings at the checkout,’ the company spokeswoman added.

On the subject of personalised offers, the company claimed: ‘We find that being able to provide more relevant offers leads to a better experience and additional value back for members shopping across our businesses.’

‘Our suppliers can in turn utilise the aggregated insights we provide to them to consider how they can tailor their contributions to the various promotions that Everyday Rewards offers to its members, to help provide the most value to our members,’ they added.

Recently, Woolworths announced multiple promotions that could benefit their loyal customers:
Key Takeaways
  • Experts warned that loyalty programs like Woolworths Everyday Rewards can deter customers from seeking the best price by encouraging them to shop at specific stores.
  • The ACCC has criticised the data collection aspect of such programs, highlighting concerns about privacy and the use of personal information.
  • Woolworths claims its rewards program offers significant savings to those who use it effectively, with many customers enjoying discounts on their shopping.
  • Finance Editor Gemma Acton cautioned that while rewards programs offer benefits, they also lead to overspending and sharing of personal data with various partners, which can be used to build detailed consumer profiles.
We'd love to hear from you, our valued Seniors Discount Club members. Have you found loyalty programs like Woolworths Everyday Rewards beneficial, or do you feel they've influenced your shopping habits in unexpected ways? Share your experiences and tips in the comments below!
 
Sponsored
Most of the thing sound pretty much alarmist ... It really is 'common sense' ..... Why would anyone buy something they have never purchased just because they offered larger rewards,,
 
  • Like
Reactions: DLHM
What a load of unmitigated codswallop! I have NEVER had to spend anywhere near $2000 to get $10 off. There was a special points offer just recently where you got 20x the points for buying a certain category of item and that combined with my usual $120 shop, including boosters, with Everyday Extra got me $10 off my next shop.
 
Just annoys me that the passing on of personal information is rife and we then get flooded with ads and trivia we don't expect or want.
Just this morning alone I have removed 15 unwanted ads and trivia and it's only 11am!
 
  • Angry
Reactions: DLHM
The rewards program $10 per 2000 points, has saved me on numerous occasions. Especially when I don't have any money at all, which sadly, is a perpetual state of stress for me. You can accrue the points, so you can save up your 10 dollars for a bigger shop if necessary. I've shopped at Aldi but I find I still have to go to woolies to get the things I need and often buy, that Aldi doesn't stock.
So I like it.
 
The rewards program $10 per 2000 points, has saved me on numerous occasions. Especially when I don't have any money at all, which sadly, is a perpetual state of stress for me. You can accrue the points, so you can save up your 10 dollars for a bigger shop if necessary. I've shopped at Aldi but I find I still have to go to woolies to get the things I need and often buy, that Aldi doesn't stock.
So I like it.
 
I only buy what I need.

I get offered from flybuys if I spend $170 a week over 4 weeks I will receive 10,000 bonus points . I spend more than that every week !

The are gathering information on me ! What by what I buy !!! Then let them I don't say this is personal information.

There is not much personal info they can get from me except my email and address and I have never received anything buy companies eg insurance.

The worst companies that you will be flooded with calls is Compare The Markets which post for them are on here!!

I always use flybuys and always come out in top. I find you get so many more rewards and accumulate $$ faster than with the woolworths rewards. My daughters have also seen this. One daughter always used her woolworths rewards card and hardly built up points. She switched to Coles and flybuys and within 6 months has over $800 in her kitty
I take it, you are feeling matter today S/R 👍
 
  • Like
Reactions: Suzanne rose
I have many loyalty cars, I ignore the offers and just swipe when in store or online, to me its a perk that I don't aim for and are pleasantly surprised as it builds up. I let it built, with no particular effort, and it paid for my 60th birthday party food, drinks and decorations. I must admit it helps subsidise the Christmas party as well. I scan the specials not the offers and only buy if I NEED too, not because of the offer or the specials. For example, I live by myself so I buy 2 potatoes at a time not a bag because I end up throwing 3/4 of the bag out - false economy. I treat the offers and specials the same.
 
She said: ‘Seven out of 10 Australians belong to two of the country’s biggest rewards programs—you have to spend roughly $2,000 to get $10 off your grocery shop.’
It's 2000 points not $$$
Yeah that's right, who called them experts ?
 
I only buy what I need, never frivolously. Aldi doesn't cut it for me for a full load, although I wish it would. Flybuys come out on top with rewards. Yesterday, I spent my flybuy $ at Officeworks for something I needed.
 
  • Like
Reactions: Suzanne rose
I am confident our rewards programme(s) save us money on a monthly or annual basis. I'm not inclined to spend my time doing the rounds of 3 or 4 supermarkets checking prices in case I might be able to save a few more dollars by that means.
Also, I'm sure a whole of swag of entities and Companies have lots of personal information about me; it's almost unavoidable. I'm just very careful about scams, advertising and approaches from people who might try to misuse that information.
 
It would appear that shoppers who don't use rewards cards are the ones paying for those who do in the price gouging corruption. It just confirms that WW are indeed SCAMMERS.
 
Incorrect
Not off your basic shop it's not.
Unless they have promotions which half the time aren't suitable or need you to spend a certain amount every week.
Not everybody can get to the supermarket every week.
I and many other people in my town have to do a three hour round trip to shop can't do that every week.
I was under the impression they were talking about a basic shop.
 
They always send through Booster points to my Woolworths app. I just boost everything but don't always buy what's been boosted. I just buy what I need. Plus a few extras😁 Not bothered how long it takes to get my$10. Any other itemsi I get fromAldi. The best thing is getting a 4c voucher for petrol plus 4c from Origin Energy.

And as for information being passed around. Big deal!!!🙄
 
I've had my Woolworths Rewards membership for years and I know I have saved a considerable amount of money because of it. I get home delivery for free (costs $14.00 per month for as many free deliveries as you wish) and the Woolworths website makes shopping very easy. There were 38 pages of specials last time I looked and I often get things I need at half price. Instead of being cynical I would suggest to members that they do a little bit more studying on the website (Coles included) and enjoy the rewards. I have liked Aldi in the past but always I had to go elsewhere for things I wanted which Aldi did not have. Aldi also have their special buys which are there to tempt you into buying something you really don't need. I love my Woollies so maybe my comments are a little bias but I think that Woolworths cop enough unfair criticism.
 
I've had my Woolworths Rewards membership for years and I know I have saved a considerable amount of money because of it. I get home delivery for free (costs $14.00 per month for as many free deliveries as you wish) and the Woolworths website makes shopping very easy. There were 38 pages of specials last time I looked and I often get things I need at half price. Instead of being cynical I would suggest to members that they do a little bit more studying on the website (Coles included) and enjoy the rewards. I have liked Aldi in the past but always I had to go elsewhere for things I wanted which Aldi did not have. Aldi also have their special buys which are there to tempt you into buying something you really don't need. I love my Woollies so maybe my comments are a little bias but I think that Woolworths cop enough unfair criticism.
You get free deliveries for $14/ month, how is that free???🤣
 
I've had my Woolworths Rewards membership for years and I know I have saved a considerable amount of money because of it. I get home delivery for free (costs $14.00 per month for as many free deliveries as you wish) and the Woolworths website makes shopping very easy. There were 38 pages of specials last time I looked and I often get things I need at half price. Instead of being cynical I would suggest to members that they do a little bit more studying on the website (Coles included) and enjoy the rewards. I have liked Aldi in the past but always I had to go elsewhere for things I wanted which Aldi did not have. Aldi also have their special buys which are there to tempt you into buying something you really don't need. I love my Woollies so maybe my comments are a little bias but I think that Woolworths cop enough unfair criticism.
$14.00/month for unlimited home deliveries is way cheaper than paying for petrol to drive and pick it up. It's a handy alternative for people.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else
  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×