Reports Woolies is bringing back frequent flyer points

WOOLWORTHS is reportedly set to drop its Woolworths Dollars rewards scheme in a major turnaround for customers.

WOOLWORTHS is set to abandon its Woolworths Dollars rewards scheme in a major overhaul that would bring back customers earning Qantas Frequent Flyer points, according to new industry reports.

Australian Business Traveller reports the supermarket giant will ditch the scheme — which copped a massive backlash from customers — just nine months after launch.

The changes are detailed in a Woolworths Rewards Support Guide distributed to store managers ahead of its in-store launch on August 31, according to the travel website.

Under the overhauled scheme, shoppers would earn “Woolworths points”, with one point earned on every dollar spent at Woolworths, affiliated Caltex service stations and BWS bottle shops.

When customers reach 2000 points, or $2000 of spending, they will be able to convert that into $10 worth of “Woolworths Rewards”, which can be used for $10 instant discount at the checkout or 870 Qantas Frequent Flyer points.

Australian Business Traveller reports staff training notes in the guide indicate all current Woolworths Dollar balances will be automatically transferred to the new points on August 31.

“If Woolies was over in Rio they’d win a Gold medal for this backflip,” Australian Business Traveller editor David Flynn told news.com.au.

“But it was a much-needed reversal after the grocery giant scuppered its Qantas partnership in favour of an over-complicated and under-rewarding loyalty scheme.

“Unfortunately, under the new scheme it’ll cost almost twice as much to earn the same number of Qantas Points compared to the long-running program which Woolworths axed in December 2015.”

Under the new scheme, spending $100 will earn you around 43 Qantas Points, whereas previously the same $100 would have earnt you 70 Qantas Points based on the old system where customers earned one point for every dollar spent over $30.

A Woolworths spokeswoman said “we’re not commenting on speculation”, but pointed out the supermarket had “flagged for some time that improvements to Woolworths Rewards were on the way, including a partnership with Qantas”.

“We look forward to unveiling it soon,” she said.

It comes after reports earlier in the year that the supermarket was planning a revamp of the $500 million rewards program which would have expanded the range of products on which customers earn Woolworths Dollars.

In June, market research firm Canstar Blue surveyed 2300 Coles and Woolworths shoppers about their supermarket rewards program. Only 41 per cent of Woolworths shoppers agreed that their rewards program was good value, compared with 65 per cent of Coles shoppers.

The supermarket giant is set to announce its full-year results next Thursday.

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