Woolworths' Everyday Rewards scheme under scrutiny: ‘It’s black and white price gouging’
- Replies 21
The Woolworths Everyday Rewards program is designed to give customers discounts and special offers.
However, a recent accusation has sparked a debate over whether the supermarket giant is engaging in what some call 'black and white price gouging.'
A shopper's revelation of a stark price difference for a store product has raised eyebrows and questions about the fairness of such pricing strategies.
The shopper's social media post showcased a side-by-side comparison of the regular and member prices of a Dove body wash.
The prices, which were $17 for non-members and $8.50 for Every Rewards members, have struck a nerve with many Australians, garnering a wave of responses.
One user commented, ‘No matter how you look at it, half-price just admits that the full price is a gouging.’
The debate has extended to the value of signing up for loyalty programs like Everyday Rewards. While some customers are comfortable sharing personal details, others are wary of the potential privacy implications.
‘If they want to breach my privacy about buying broccoli, pads, bread and milk, they can have it,’ a woman said.
‘What info do you have on there that you don’t want them to see?’ Another added.
Woolworths has defended its pricing strategy, stating that the Everyday Rewards program is part of its commitment to helping Australian families, and it is doing ‘more everyday to help customers spend less with us’.
‘Our Everyday Rewards program helps members save hundreds of dollars every year by scanning their card and boosting offers,’ an Everyday Rewards spokesperson said.
‘Member Pricing is another example of the benefits of being an Everyday Rewards member. Outside of our Everyday Rewards program, Woolworths has thousands of products on special every week.’
You can watch the video below:
Credit: @daniel.czerwik / TikTok
Finder Consumer Expert Taylor Blackburn also weighed in.
He said that while loyalty programs are popular—91 per cent of Australians participate in at least one, with the majority taking part in Woolworths Everyday Rewards—the member pricing system can leave non-participants feeling disadvantaged.
‘While it's fair to say that seven in 10 Aussies are getting the member price, $17 for soap would leave those who don't want to take part feeling dirty,’ he said.
Blackburn continued: ‘Member pricing has long been the carrot in the supermarket space, but in this case, you could argue it is being used as a stick.’
‘Membership has its benefits, but this is a good reminder to stay vigilant and know what things cost in the market. Especially on toiletries, you can often find these items for less at a chemist or online.’
‘Whether it's a litre of soap or 10GB of data on a mobile network if you think you are paying too much, you are probably right.’
Eagle-eyed shoppers have recently called out an Easter product from Woolworths for its price-dropped label despite being a dollar higher than last year.
Leading consumer advocacy group CHOICE pointed out that pricing strategies aren’t isolated incidents. You can read more about the story here.
Are you a loyalty program member in any store? Do you also notice any price differences from them? Let us know in the comments below!
However, a recent accusation has sparked a debate over whether the supermarket giant is engaging in what some call 'black and white price gouging.'
A shopper's revelation of a stark price difference for a store product has raised eyebrows and questions about the fairness of such pricing strategies.
The shopper's social media post showcased a side-by-side comparison of the regular and member prices of a Dove body wash.
The prices, which were $17 for non-members and $8.50 for Every Rewards members, have struck a nerve with many Australians, garnering a wave of responses.
A shopper criticised Woolworths’ price difference between non-members and Everyday Rewards Members. Credit: @daniel.czerwik / TikTok
One user commented, ‘No matter how you look at it, half-price just admits that the full price is a gouging.’
The debate has extended to the value of signing up for loyalty programs like Everyday Rewards. While some customers are comfortable sharing personal details, others are wary of the potential privacy implications.
‘If they want to breach my privacy about buying broccoli, pads, bread and milk, they can have it,’ a woman said.
‘What info do you have on there that you don’t want them to see?’ Another added.
Woolworths has defended its pricing strategy, stating that the Everyday Rewards program is part of its commitment to helping Australian families, and it is doing ‘more everyday to help customers spend less with us’.
‘Our Everyday Rewards program helps members save hundreds of dollars every year by scanning their card and boosting offers,’ an Everyday Rewards spokesperson said.
‘Member Pricing is another example of the benefits of being an Everyday Rewards member. Outside of our Everyday Rewards program, Woolworths has thousands of products on special every week.’
You can watch the video below:
Credit: @daniel.czerwik / TikTok
Finder Consumer Expert Taylor Blackburn also weighed in.
He said that while loyalty programs are popular—91 per cent of Australians participate in at least one, with the majority taking part in Woolworths Everyday Rewards—the member pricing system can leave non-participants feeling disadvantaged.
‘While it's fair to say that seven in 10 Aussies are getting the member price, $17 for soap would leave those who don't want to take part feeling dirty,’ he said.
Blackburn continued: ‘Member pricing has long been the carrot in the supermarket space, but in this case, you could argue it is being used as a stick.’
‘Membership has its benefits, but this is a good reminder to stay vigilant and know what things cost in the market. Especially on toiletries, you can often find these items for less at a chemist or online.’
‘Whether it's a litre of soap or 10GB of data on a mobile network if you think you are paying too much, you are probably right.’
Eagle-eyed shoppers have recently called out an Easter product from Woolworths for its price-dropped label despite being a dollar higher than last year.
Leading consumer advocacy group CHOICE pointed out that pricing strategies aren’t isolated incidents. You can read more about the story here.
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