Cashrewards ending 5% Woolworths gift card discount

[Mattg]

Does anyone know if the NSW Seniors card will still be offering the 5% off Woolies cards?

I don't know for sure, but all Woolies gift cards appear to be affected by this. So, most likely.

 

[kristo1]

In that case I thank cashrewards for telling us in advance, I cannot find anything on the NSW Seniors Website !!

 

[I love to travel]

In that case I thank cashrewards for telling us in advance, I cannot find anything on the NSW Seniors Website !!

Yes if course they win too by the commission but am grateful. Bought a year's worth of groceries and Dan Murphy's and petrol glad I do a budget so I knew how much to buy

 

[GSP]

While the discount offered on gift card could be considered a "loss" from WW perspective, I suggest that it is possible/likely that more than 5% of the value of purchased gift cards are never redeemed. Lost cards, sitting in drawers, expired. Although the expiry duration has been extended in recent years. I suggest that its still a very good revenue source for companies like WW. They get the money up-front, with redemption often taking months/years to complete, and that money has already been spent within the WW group and not going going to be spent at a competitor later.

I agree with all of that. They would have factored in the amount that is not redeemed and the cashflow advantage of having the money first. Adding how this contributes to additional revenue one would have to think that it would therefore nullify and in fact become positive hence why it is offered in the first place.

However, if market dynamics saw that the spillage ratio change or the cashflow/promotional saving less beneficial , they may think it is not worth it which may be what is happening.

Either way however it would still have to be listed on the balance sheet unless they somehow can quantify those intangibles (possibly the spillage based upon history).

 

[NM]

I agree with all of that. They would have factored in the amount that is not redeemed and the cashflow advantage of having the money first. Adding how this contributes to additional revenue one would have to think that it would therefore nullify and in fact become positive hence why it is offered in the first place.

However, if market dynamics saw that the spillage ratio change or the cashflow/promotional saving less beneficial , they may think it is not worth it which may be what is happening.

Either way however it would still have to be listed on the balance sheet unless they somehow can quantify those intangibles (possibly the spillage based upon history).

Agreed. But I do suspect there is a strong element of "we can decrease the discount and make more profit because people will still buy them at 5% instead of 3% discount".

 

[AdMEL]

I get mine through Suncorp and there is a message on their rewards app this morning saying that from 10am today (19th) they will drop to be only 3% off.

I note that Suncorp Rewards have already reduced the discount on WW (they don’t have Wish cards) and Caltex WW gift cards to 3%, however they still have gift cards for Dan’s, WW liquor, BWS, Cellarmasters & Big W with 5% discount - no mention of the discount on those being reduced, nor any mention of the discount on WW cards being reduced to 0%.

 

[levelnine]

But I do suspect there is a strong element of "we can decrease the discount and make more profit because people will still buy them at 5% instead of 3% discount".

Cashrewards is going to 0%. I assume most others will at the same time.

The reason they would be removing the discount is that there is no longer a financial benefit to them of obtaining your money early via gift cards due to low interest rates.

The principal benefit of gift cards for corporations is that they get your money early and can earn interest on that money and/or use it to reduce their debt early. There is also the benefit of 'breakage' -- gift cards that are not redeemed -- but that would be small in the supermarket sector because these aren't being bought for gifts, they are being bought by everyday shoppers to save 5%.

With record low interest rates, gift cards are a liability on the corporation's balance sheet that provide no corresponding benefit.

 

[I love to travel]

I do wonder whether Dan's will separate and we won't be able to use them there shortly.

 

[AdMEL]

I do wonder whether Dan's will separate and we won't be able to use them there shortly.

I think much, if not all, of their liquor division has already been separated and is up for sale.

 

[Dr Ralph]

I think much, if not all, of their liquor division has already been separated and is up for sale.

No. Delayed this process until 2021.

 

[AdMEL]

No. Delayed this process until 2021.

Didn’t know it had been delayed, but makes sense in the current environment.

 

[big_RED]

Yeh I'll be stocking up as well. Won't be buying too many, but probably 3x what I normally do

 

[GSP]

FWIW, I bought 4 * $500 vouchers ($1900). Almost swallowed up my $3k spend on my new card in one go which was good.

Given Coles are blitzing it with offers relative to Woolies hence a lot lower shop there this could last me quite a few months, so not keen to go to much further, as I suspect there will be someway to get a discount at Woolies in the future. Even by way of example, there are many cards that earn more points at a supermarket than if purchasing a gift card - not enough to make up the 5%, but goes someway.

 

[DeKa]

It appears RewardGateway haven’t yet been impacted but their system seems to work differently. They don’t punch you out to the WW site to purchase the gift cards - they sell them themselves. I notice the expiry date (and hence the original purchase date) is always 1-4 weeks in the past so RewardGateway must purchase in bulk and hold the gift cards until they sell.

I’ll post again if I hear any changes with them

 

[NM]

It appears RewardGateway haven’t yet been impacted but their system seems to work differently. They don’t punch you out to the WW site to purchase the gift cards - they sell them themselves. I notice the expiry date (and hence the original purchase date) is always 1-4 weeks in the past so RewardGateway must purchase in bulk and hold the gift cards until they sell.

I’ll post again if I hear any changes with them

One of the drivers for me purchasing WW Wish Cards is to get the Amex Rewards 3x points bonus for "supermarket spend", which certainly works when bounced to the WW site for purchase. I expect the Amex bonus points would be at risk when purchasing from other sources???

Naturally, I understand that not everyone is buying them for the same reason, so won't be a consideration to many people. For me, if no Amex bonus and a reduced discount down to 3%,, I would need to reconsider the overall benefit to pre-paying for my groceries and vehicle/personal fuel needs.

 

[andye]

One of the drivers for me purchasing WW Wish Cards is to get the Amex Rewards 3x points bonus for "supermarket spend", which certainly works when bounced to the WW site for purchase. I expect the Amex bonus points would be at risk when purchasing from other sources???

Naturally, I understand that not everyone is buying them for the same reason, so won't be a consideration to many people. For me, if no Amex bonus and a reduced discount down to 3%,, I would need to reconsider the overall benefit to pre-paying for my groceries and vehicle/personal fuel needs.

Yes. For example, it looks like I will still be able to buy 5% WISH via HCF but with a 1% fee and no Edge supermarket bonus. Even though I have a Charge that's not a great advantage over 3%

 

[twentyfive]

indeed still nothing from RACQ. But given every other source seems to be changing early this week, it would not surprise me if RACQ is going to change too and just has not notified members of the change yet. Today is my Amex Statement date, so probably would be prudent for me to purchase some today, just to be sure.

5% still available as of this morning at RACQ. 475 charged on CC, 500 in money app. see what happens next month when discounts are removed from most vendors

 

[RAM]

Sad to report that CashRewards is being mean

Decided to check today & the transition screen 'Going to WW for 5% discount' is still up. You only learn the bad news once you get to checkout .

3% it is. Now to see how tempted we become before the 3% disappears in November....

 

[GSP]

I notice CR has the following listing. I didn't realise the individual stores cards were staying at 5 (except Woolworths down to 4%)

I looked into AGL rewards and they have the same discounts.

I went into RewardsGateway (My employer scheme). Wish Cards are still 5%.

 

[DeKa]

I just got a push message from NRMA Roadside saying they’re offering 5% off Wish Gift Cards. They used to offer them but stopped a few years ago.

The mystery continues.