m0hamed

Rumour is possibly 0.5 points per dollar if they stay on board.

If not, Woolworth's will simply offer discount of the shopper's next spend.

perthite

No more points.....Simply money off your shopping.

og

It's almost terminal:

http://www.smh.com.au/business/retai...22-gkft7l.html

perthite

I believe the new version will just be called Woolworths Rewards.

og

This must have caught QF with their pants down. Their only email correspondence since the news broke being that silly message saying "watch this (empty) space" and more lately a spam piece advertising AA/QF. They must be in a panic - or just don't care. Maybe it's time for them to reach out to their loyal travellers. It's not a good look when the media feeds information.

Supersonic Swinger

This quote is no surprise - "There has been industry speculation for a few years that Woolworths was unhappy with the high fees it was paying Qantas for points as part of their deal."

Blackcloud

Well QFF did increase the charges a year or two ago, the sign was when banks capped or dropped the earning rate on their QF co-branded CC.
Anyway WOW I not entirely blameless they went into partnership with one of the most popular loyalty programmes in Australia knowing it would increase their costs but hoped for a higher revenue stream. Their recent performance indicates they need to do something without further reducing their revenue and customer base. It all goes in cycles I remember when Coles was being walloped buy WOW "The fresh food people" and they had to drastically change the way they did business....increase the number private labelled items at the expense of the branded items.

Dave Noble

I don't think that there necessarily is any blame on Woolworth's at all. At the time it entered into the agreement it assumedly hoped that the costs would be outweighed by higher sales and additional customers

It may well have met that aim - it does not mean that it is necessary to continue it now

If Woolworth's can maintain its current customer base without paying Qantas , no reason to do so

Supersonic Swinger

This isn't a case of blame. The expectations would have been there when the arrangement was entered into, but the great thing about a program like EDR is that Woolworths is able to internally measure the success of the program against the costs.

It's much like the old QFF restaurant program - loads of restaurants signed up thinking that the ability to earn 'valuable' QFF points would bring hoards of customers to their door. Whether they did or not, anecdotally restaurants were paying up to 6 cents out of every dollar they received from diners to give the diner the 3 QFF points per dollar. On the overall margins restaurants make, that was a huge slug and they left in droves before QFF closed that program.

Woolworths has probably run the numbers and is concluding that $80m per year can be better spent than handing it over to QFF.

Himeno

Woolworths throws away far more then $80 million/year on point of sale that they either can't use, gets tossed out before it's used, never gets used or gets pulled down much earlier then it had been planned for.
They are getting rid of most of HR. In store butchers in VIC are gone with all stores in VIC going to case ready meat.
Heck, if buying and marketing would actually listen to the store staff for once and not force stock in to stores that will only end up getting thrown out or marked down to 60+% off, things might be better.

jmoorfoot

The real advantage of the tie up was the ability to join QFF for free.

ollieinmelbourne

https://www.woolworthsmoney.com.au/c...inum-card.html

Might simply become the Macquarie bank Qantas card seeing as they administer it?

perthite

There have been, and still are, many options available to join QFF for free. These don't involve Woolworths.....

jmoorfoot

Yes, but not as easy as just walking into Woolies & signing up for everydayrewards.

eastwest101

Yeah - I was thinking that the pointless message from Qantas was more about going into a holding pattern until a future announcement, rather than anything meaningful, its interesting that QF Corporate communications hasn't uttered a single word nor has there been much notification to QF shareholders about any material change to the running of the business. After all - you can give your customers the mushroom treatment but giving shareholders the mushroom treatment is a bit riskier.