Experts reveal strategies needed to rack up big discounts with supermarket memberships

Experts have drilled down into how much shoppers can actually save from all the supermarket memberships each year, warning that signing up isn’t enough – you have to put in the work.

Shannon Hendry shopping with daughters Cleo, 3, and Charlie, 4, at Costco Warehouse in Bundamba. Picture: Tara Croser.

Supermarket memberships could save consumers hundreds of dollars a year off their groceries – but only if they are savvy and prepared to put in some work, experts say.

The paid rewards programs, such as Coles Plus Saver, Woolworths Everyday Extra and Costco Gold Star Membership, promise everything from discounts of up to 10 per cent off a month to special freebies and even money back.

But saving a bundle isn’t guaranteed, according to comparison sites Finder and Canstar Blue, which The Courier-Mail asked to put the programs to the test.

“Like almost all reward programs or subscriptions, the value comes down to how often you shop and what benefits you will actually use,” said Eden Radford from Canstar Blue.

Finder’s Consumer Sentiment Tracker found the average Aussie household spends $210 per week on groceries.

By taking advantage of the Coles or Woolworths memberships which cost $7/month, that household could save $168 a year on their groceries when subtracting the membership fee. However, for those who do a bigger monthly shop of $500, the saving could be as high as $516 each year.

But for those who sign up to free delivery programs, such as the Coles Plus $19/month deal, savings could be as little as just $36 a year, Ms Radford said.

“Depending on the cost of the membership program you choose, your total savings could be very different,” she warned.

Finder expert Sarah Megginson said the Coles Plus Saver and Woolworths Everyday Extra programs were worth the cost, but it required consumers to be savvy.

“We’re talking about a weekly habit here where you can make just a few shifts in your habit and save a lot of money,” she said.

Costco Warehouse in Bundamba. Picture: Tara Croser.

“The real key to it, though, is you have to have a bit of a strategy with it.”

Both memberships offer 10 per cent off a single shop per month, which Mrs Megginson needs to be your biggest and most expensive shop of the month, including things like laundry powder, dishwashing tablets, coffee beans and toiletries.

She said that discount can then be amplified by combining it with half price specials.

“I’ll plan out meals and things around what’s on sale and stock up on the half price items, then I’ll get the extra 10 per cent off through my rewards program,” she said.

For those who shop at Woolworths, she also recommended buying one of the supermarket’s gift cards through the app for 3 per cent off, which will give customers even greater savings.

“I buy a gift card in the amount that is my groceries and I get 3 per cent off it and I get that additional discount as well. Three per cent might not seem like much, but if I’m doing a big grocery shop, say $350-$400, that’s another $10 to $12 off and if you do that every week, it starts to add up,” she said.

Mrs Megginson said the membership programs worked best for large families, who bought from the one supermarket regularly, with singles and those who shop at farmers’ markets unable to reap the full benefits.

She said this was especially true at Costco, with its memberships ranging from $65-$130 best for those with a large family who liked to buy in bulk and were perhaps paid monthly.

Ipswich mother of two Shannon Hendry, 30, said she had saved “hundreds” from her membership with Costco.

“You make your money back on your membership by the time you buy in bulk because then you don’t have to worry about buying it every week at the supermarkets, that’s where Costco wins,” she said.

Shannon Hendry shops at Costco for her family. Picture: Tara Croser.

Ms Hendry also has subscriptions with Woolies, Coles and IGA, but said in her opinion Costco offered the best value.

“I normally just come here though to stock up on supplies because it’s cheaper,” she said.

As for the more expensive memberships at Woolworths and Coles ranging from $10/month to $19/month, which include the likes of unlimited free delivery or rapid click and collect, the experts agree that it really comes down to personal shopping habits, as these schemes have minimum order costs.

“If you’re looking to join a program, or even questioning the value of their current program, it’s best to start by reviewing your current shopping behaviour,” Ms Radford said.

“How regularly are you doing your grocery shopping, are you always shopping at the same supermarket, and are you confident you’ll know when and how to make the of your monthly discount shop?

“If you’re not sure about any of these answers, then it may be worth reassessing your membership, or seeing what you can do to make sure you can make it worth it.”

QUT retail expert Gary Mortimer agreed and said these paid memberships represented the evolution of the loyalty program.

“In the past everyone would get everything for free and we would have eight to 10 loyalty cards in their wallet so no one was truly loyal,” he said.

“So how do we make them loyal? We get them to pay a little bit for it. If you’re going to spend $10 a month to be in the program, you’re more likely to shop there.”

Originally published as Experts reveal strategies needed to rack up big discounts with supermarket memberships