Woolworths Reduces Benefits for Subscription Services
Woolworths, one of Australia’s largest supermarket chains, has announced it will be revamping its subscription services, notably with changes to its Delivery Unlimited and Everyday Extra offerings. Starting from June 1, subscribers to Delivery Unlimited will no longer earn double Everyday Rewards points on their online purchases, which has been a popular feature.
Changes to Delivery Unlimited
The Delivery Unlimited subscription, which costs $15 a month or $119 annually, currently provides customers with free delivery on same-day or next-day orders over $75. As part of the upcoming changes, Woolworths will remove the benefit of earning double points to streamline their service, focusing on the essential offering of timely delivery. In lieu of this, subscribers will receive three months of the Direct To Boot Now service at no extra charge, which allows for pick-up within an hour and typically costs $5 per order.
A spokesperson from Woolworths stated, “This service continues to be very popular and offers great value and convenience to our customers.” They emphasised the decision to concentrate on delivery services, despite the withdrawal of the points incentive.
Everyday Extra Subscription Adjustments
Furthermore, changes to the Everyday Extra subscription, which previously provided a monthly 10% discount at BIG W, will also take effect on June 1. Instead of the discount, subscribers will receive exclusive monthly deals at BIG W, with the aim of maintaining lower prices across the board.
Despite these rollbacks, Woolworths has reported positive growth, with a 3.2% increase in group sales reaching $17.3 billion in the third quarter of the financial year. The core Australian Food division experienced a 3.6% rise in sales, amounting to $13.1 billion. However, performance at BIG W has faced challenges, with the department store projected to incur a loss of $70 million in the latter half of the fiscal year.
Woolworths also revealed it has 10.3 million active Everyday Rewards members, with more than 600,000 new registrations in the past year. However, the news about the withdrawing of benefits has prompted a backlash among some subscribers who expressed their disappointment online.
One user lamented a lack of benefits, particularly for those living in rural areas who rely on Delivery Unlimited, stating, “This is very disappointing, especially considering that I don’t receive many of the benefits that normally come with Delivery Unlimited.” Another commented on the overall perception that Woolworths is prioritising profit over customer satisfaction, saying they would consider switching to Coles for their loyalty programs.
Woolworths’ Response and Customer Service
In response to the concerns raised, a Woolworths representative affirmed that the Delivery Unlimited service remains beneficial for customers, underscoring the value it still provides. They also stated that customers wishing to cancel their subscription can reach out to customer service for assistance.
As Woolworths continues to refine its loyalty and subscription services, these adjustments reflect broader challenges in the retail sector as companies seek to balance costs while delivering value to customers.
This summary encapsulates the essential updates regarding Woolworths’ subscription services and their recent changes, while retaining the core information provided in the original content.
