Woolworths has informed its customers about modifications to their schemes, including limitations on the perks. Everyday Extra members and those with an insurance policy will only be able to redeem their 10 percent discount in physical stores, not for online shopping.
GLOWoolworths has announced changes to its delivery subscription models due to increasing fuel and operating costs. These changes will take effect from July. The supermarket giant offers two membership models: Delivery Unlimited, which provides free home deliveries, and Everyday Extra, a program that allows Woolworths’ loyalty members to pay an additional monthly fee for benefits such as a 10 percent discount on one monthly purchase. Customers with Woolworths insurance or a mobile plan are also eligible for a 10 percent discount once a month.
However, Woolworths has informed its customers about modifications to these schemes, including limitations on the perks. Everyday Extra members and those with an insurance policy will only be able to redeem their 10 percent discount in physical stores, not for online shopping.
For Delivery Unlimited members to qualify for free delivery, the minimum spend will increase from $50 to $75. Additionally, customers will be charged $1 per transaction for reusable bags and $2 per transaction for paper bags.
According to a Woolworths spokeswoman, the company reviewed the programs due to higher associated costs with home delivery and direct-to-boot services. Since most Everyday Extra subscribers, as well as mobile and insurance customers, were using their 10 percent discount in physical stores, Woolworths decided to make the discount available only in-store. This adjustment will also allow the company to expand Everyday Extra to more members in a sustainable manner.
The spokeswoman clarified that the review of Delivery Unlimited terms was prompted by rising prices and other costs. However, the subscription price itself remains unchanged. In 2021, the minimum spend for Delivery Unlimited was $100, which was lowered to $50 in October 2021. Woolworths believes that the revised minimum spend of $75 aligns better with customer shopping behavior and the company’s costs to continue offering the service.
Woolworths is currently gathering customer feedback and plans to reach out to individual customers who have expressed concerns, offering alternative ways to continue shopping with the company.
E-commerce and home delivery services have become increasingly important for major supermarkets, particularly during the pandemic. However, as shoppers return to in-store shopping, online sales growth has slowed down. Woolworths has been focusing on improving its home delivery service over the past year and recently acquired the failed rapid grocery delivery service, Milkrun. The company has rebranded its delivery business as Milkrun and will continue offering a selection of 10,000 grocery items to specific metro areas in under 60 minutes. A $5 delivery fee has been introduced to ensure a fast and high-quality experience for customers.
