Woolworths Withdraws Subscription Benefits for Customers
Woolworths has announced a removal of key benefits for subscribers of its Delivery Unlimited and Everyday Extra services, with changes set to take effect from June 1. This decision marks a significant adjustment as the supermarket chain aims to streamline its service offerings.
Removal of Double Points
Starting next month, subscribers to Woolworths’ Delivery Unlimited service will no longer earn double Everyday Rewards points on their online purchases. This monthly subscription, priced at $15 or $119 annually, provides free delivery for same-day or next-day orders over $75.
A representative from Woolworths mentioned to Yahoo Finance that despite the decision, the service remains highly popular among customers due to its convenience and value. The spokesperson stated, “We are streamlining Delivery Unlimited to focus on the primary benefit for subscribers, which is providing timely and convenient delivery.”
As part of this overhaul, Woolworths is introducing a three-month complimentary Direct To Boot Now service, enabling pick-up in under 60 minutes. This typically incurs a $5 charge per order.
Changes for Everyday Extra Subscribers
In addition to modifications in the Delivery Unlimited service, customers enrolled in Everyday Extra will also face a loss of the monthly 10% discount on BIG W purchases beginning June 1. Instead, subscribers will receive special monthly offers from BIG W to help keep overall costs down.
Reflecting on these changes, a representative for Everyday Rewards asserted the intention behind these alterations is to ensure competitive pricing across BIG W.
Woolworths’ Sales Performance
Despite these changes to subscription benefits, Woolworths reported a 3.2% increase in group sales for the third quarter, amounting to $17.3 billion. The Australian Food division noted a 3.6% increase year-on-year, yielding $13.1 billion. However, the performance of BIG W remains less rosy, with expectations of a $70 million loss in the latter half of the year.
Woolworths has recorded 10.3 million active Everyday Rewards members, welcoming over 600,000 new members in the past year. However, reactions from customers have indicated dissatisfaction with the recent changes. Many took to social media to voice their disappointment, particularly those in rural areas who expressed feeling disadvantaged despite their subscription fees.
One user commented, “This is very disappointing, especially considering that I don’t benefit from many of the features of Delivery Unlimited because I live rurally. So, just one less thing I now get with my subscription.”
Customer Reactions
While some customers expressed frustration, a few others noted they would continue with the subscription due to savings on delivery costs. Others have suggested they might explore loyalty programmes from competitors, such as Coles.
Woolworths maintains that the Delivery Unlimited service still offers compelling benefits, and customers wishing to cancel can reach out to the customer service team for assistance.
In a market where customer satisfaction and value perception are paramount, these changes will put Woolworths’ strategies to the test as they strive to retain their customer base amidst evolving expectations.
