Woolies thinks QF is on the nose

Old Oct 21, 2015, 5:24 pm
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og
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Woolies thinks QF is on the nose

So Woolies reckons buying QF points is too expensive. If Woolies breaks the bond with QF, I think there will only be one company sweating. Is this a management decision by the same team that set up Masters?

http://www.smh.com.au/business/retai...21-gkf0ry.html
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Old Oct 21, 2015, 6:06 pm
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It seems to be a fairly sensible view by Woolworth's. Most people I know go shopping at where is conveniant/has desired products rather than any desire to use a particular store
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Old Oct 21, 2015, 7:08 pm
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og
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The biggest FT related impact will be those depending on a $31 purchase every 18 months to keep a QF FF account alive
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Old Oct 21, 2015, 8:23 pm
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Funny, today FlyBuys today announced a tie in with Etihad.
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Old Oct 22, 2015, 4:00 am
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Woolies thinks QF is on the nose

Based on a photo i have seen, they are moving away from points altogether and will be offering discounts. Sort of a spend today, get a dsicount on your next purchase type of thing.
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Old Oct 22, 2015, 4:22 am
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I've got an Everyday Rewards card somewhere but have used it maybe twice.

My grocery spend is modest and so it's hardly worth bothering with.
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Old Oct 22, 2015, 5:48 am
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I just got this email but it does not say anything.


Dear Luck_man
As a valued Frequent Flyer member we wanted to give you an update on the partnership between Qantas and Woolworths..

Woolworths and Qantas Frequent Flyer have been in partnership for more than six years. We are working together to ensure how, as a loyal member of Qantas Frequent Flyer and a Woolworths shopper, you will continue to get the best value from the rewards program..

We look forward to sharing further updates with you..
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Old Oct 22, 2015, 6:01 am
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Originally Posted by Lucky_man
I just got this email but it does not say anything.


Dear Luck_man
As a valued Frequent Flyer member we wanted to give you an update on the partnership between Qantas and Woolworths..

Woolworths and Qantas Frequent Flyer have been in partnership for more than six years. We are working together to ensure how, as a loyal member of Qantas Frequent Flyer and a Woolworths shopper, you will continue to get the best value from the rewards program..

We look forward to sharing further updates with you..
it means there's a PR criss they are trying to manage. Clearly QFF's interest is to keep the relationship so they are probably in negotiations with Woolworth's.
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Old Oct 22, 2015, 6:19 am
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It may just be Woolworths looking to get a better deal off QFF, especially as it seems QF is focusing on revenue stimulus at the moment (which is interesting) and thus may be more amenable at this point in time. I would agree that the current hook-up is most likely more favourable to Qantas than Woolworths at the moment (those willing to change shopping habits for just a small number of QFF points not likely to be a huge number - most just get QFF points for doing what they were going to do anyway).
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Old Oct 22, 2015, 6:47 am
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Woolworths is having profitability issues.
QFF is generating record profits and is known to charge through the nose for their points provided through external suppliers.
QFF points continue to decline in value until they are merely Points + Pay value, and it makes more sense for Woolworths to provide incentives in the form of discounts to their own customers.
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Old Oct 22, 2015, 7:33 am
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Originally Posted by Lucky_man
I just got this email but it does not say anything.
It's telling that the email came from Qantas....
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Old Oct 22, 2015, 10:33 am
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Woolworths already has something in place and is announcing on Sunday for launch next week.

At this point, all I'm saying is get ready to call 1300 101 234 to complain.
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Old Oct 22, 2015, 11:06 am
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Originally Posted by Dave Noble
It seems to be a fairly sensible view by Woolworth's. Most people I know go shopping at where is conveniant/has desired products rather than any desire to use a particular store
And then there are some places - Katoomba is one - where Coles, Woolworths and Aldi are within three minutes walk of each other, where Coles and Woolies offer the same lines at the same prices, have the same hours and the same parking hassles, and the same rude staff. QF FF's is what swings it for some, remove them and they will just go to whichever they happen to be closest to at the time they decide they need something.

Dave
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Old Oct 22, 2015, 1:48 pm
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Thought bubble...perhaps a very significant number of the QF FF membership is directly attributable to sign up through Everyday Rewards - figures of 8 million are quoted in the media, out of what, about 11 million?

If the association between Woolworths and QF imperils that figure, QF has a real problem on its hands, both in terms of (active) membership tally and cash income from selling its points to Everyday Rewards/Woolworths.

Many QF members from the Everyday Rewards camp will be earning low volumes of points that will never be redeemed - since QF only books up liability of points upon redemption, it loses a cash cow...
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Old Oct 22, 2015, 3:32 pm
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Originally Posted by thadocta
And then there are some places - Katoomba is one - where Coles, Woolworths and Aldi are within three minutes walk of each other, where Coles and Woolies offer the same lines at the same prices, have the same hours and the same parking hassles, and the same rude staff. QF FF's is what swings it for some, remove them and they will just go to whichever they happen to be closest to at the time they decide they need something.
I'll wait to see what the detail of the new program is....
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