Controversy Erupts as Woolworths Shoppers Decry Disparities in Loyalty Scheme Pricing

Woolworths, formerly known as Countdown, has found itself embroiled in a customer backlash following the launch of its Everyday Rewards loyalty scheme on February 1. While the supermarket promised enhanced rewards and special prices for members, disgruntled shoppers have raised concerns over what they perceive as unfair pricing practices.

Some customers have taken to social media platforms, particularly a Reddit thread titled “Don’t want to use our loyalty card and be tracked? F… you, pay 60% more. This must be regulated and made illegal,” to express their discontent. The focal point of the controversy is the apparent pricing disparity between Everyday Rewards members and non-members, with some items allegedly marked up by as much as 60%.

For instance, a jar of pasta sauce was reportedly priced at $3.30 for Everyday Rewards members and $5.30 for non-members, illustrating a 60.6% difference. The pricing controversy has sparked a discussion not only about the impact of loyalty scheme data tracking on privacy but also about accusations that Woolworths is using the launch as an opportunity to raise prices.

Critics argue that the new reward system seems to be an avenue for the supermarket to increase prices, with claims that even the discounted prices for loyalty members are higher than previous special offers. Some shoppers contend that the loyalty program is being leveraged to inflate prices under the guise of offering rewards.

Woolworths New Zealand director of digital and loyalty, Mark Wolfenden, responded to the allegations, stating that base prices haven’t been raised to cover member offers. He emphasized that the company has intentionally invested in providing more value to Everyday Rewards members without increasing overall prices in the store.

Wolfenden explained, “The new program delivers a multi-million dollar increase in rewards from the previous program, with ‘boost’ offers and member pricing providing fantastic value to members. We haven’t put up other prices in-store to cover this – it’s an investment by our business to allow Everyday Rewards members to get even more value when they shop with us.”

Despite the controversy, Woolworths maintains that it recognizes not everyone may want to join the loyalty scheme. The company asserts that other specials and its “low price” program are available to all customers, irrespective of their membership status. The ongoing debate raises questions about the balance between loyalty program benefits and fair pricing practices in the retail industry.