Coles announces game-changing plan
<p>Coles is set to launch a revamped loyalty program that could give it the edge over Woolworths in the supermarket wars.</p>
<p>Called Flybuys Max, the new program will give shoppers 5 per cent off all fresh produce and free delivery on online purchases in return for a $10 monthly or $99 annual fee. Coles currently charges between $4 and $18 for online delivery.</p>
<p>To sweeten the deal, Flybuys Max subscribers will also be offered cheap movie and theme park tickets and even access to an online film streaming service.</p>
<p>Coles has taken a page out of online retail giant Amazon’s book, with its subscription service which provides free delivery, access to streaming services and discounts products.</p>
<p>Marketing Focus’ Barry Urquhart told finance expert Ross Greenwood Coles has “underperformed” online.</p>
<p>“At the moment, online and home delivery is not performing. They’ve got to reach out and get better engagement with their customers,” he said.</p>
<p>Woolworths currently has a service called Delivery Saver that costs the same as the new Coles subscription, but only offers free delivery if a customer spends more than $100 in a single transaction. There are also no extra offers such as discounts off products.</p>
<p>Coles told <strong><u><a href="https://www.news.com.au/finance/business/retail/coles-trialling-flybuys-max-which-offers-shoppers-free-online-delivery-and-product-discounts/news-story/d5494ed3f5ee232823f8c93af1edb291"><em>news.com.au</em></a></u></strong> the Flybuys Max is currently a “trial” and there’s no rollout date yet.</p>
<p>However, Flybuys general manager Alex Chruszcz said the feedback had been “very positive” from the customers who had trialled it, but the final product might change.</p>
<p>“Flybuys Max has been developed to offer members a range of compelling long-term benefits they want like discounts on fresh food, movie tickets and theme parks, free Coles Online delivery, bonus Flybuys points at Coles Express and online video streaming.</p>
<p>“It’s currently being tested with a small group of members so that we have the best possible offers available when it rolls out nationally.”</p>
<p>Gary Mortimer, a professor of marketing at Queensland University of Technology, said Flybuys Max would mainly benefit customers who regularly shopped online, a market worth more than $3bn a year.</p>
<p>“It’s a smart move getting ahead of the game and it really is the first move Coles has made ahead of Woolworths for the last couple of years.</p>
<p>“Online shopping represents around 3 per cent of total food and grocery sales, so while it’s still a small proportion of the market, it’s certainly growing as more and more people choose this particular channel.”</p>
<p>But he noted Coles’ larger rival would see Flybuys Max as a threat.</p>
<p>“I imagine Woolworths will be very, very quick to do something similar,” he said.</p>
