Woolworths reviewing partnership with Qantas Frequent Flyer.

[Dr Ralph]

Anyone else think that Woolworths has a death wish?

Have a look at the share price since the announcement was made for your answer.

 

[anat0l]

Have a look at the share price since the announcement was made for your answer.

My naive Google search reveals an overall increase of about 1c per share compared to the last five days; including approximately 0.5c sharp increase on market opening on Friday.

What the?

 

[Dr Ralph]

My naive Google search reveals an overall increase of about 1c per share compared to the last five days; including approximately 0.5c sharp increase on market opening on Friday.

What the?

The figures you provide are not correct.

Here's the share price over the last 5 days (from around the time the speculation seriously started):

 

[Ozgirl]

Given I do 90% of my shop in the fresh food / meat and deli section. I almost never get the "special deals" on offer. Items that are not fresh food which I buy are : cleaning products, toothpaste etc, crackers ( for my cheese) the occasional & rare chocolate purchase and bread. I find the focus on processed foods a worrying trend. If reward programs in supermarkets ceased tomorrow , I should probably find myself shopping at green grocers and specialist butchers. For everything else there's "online".

Yep - think of shopping for my pantry items at Kogan!

 

[anat0l]

The figures you provide are not correct.

Here's the share price over the last 5 days (from around the time the speculation seriously started):

Thanks for clearing that up. I don't usually follow shares much, so I don't understand the point you're making about the market's reaction.

 

[Scr77]

Today, West farmers is up by the same amount, so you can't read much into that.

 

[TonyHancock]

The figures you provide are not correct.

Here's the share price over the last 5 days (from around the time the speculation seriously started):

Just as a reference point here is the ASX200 chart for the same period.



I'm not particularly expert in the stock market, but given Dr Ralph's data investors obviously purchased stock in many different ASX top 200 companies when speculation started about WOW ditching QFF points.

Aside from my obviously sarcastic and cynical post I don't necessarily disagree with Dr Ralph. You frequent flyers, and I don't consider myself to fly often enough to be in that bracket, are a passionate but small minority. Only time will tell if a considerable number of Woolworth's shoppers are against the change and will vote with their feet.

 

[Dr Ralph]

Just as a reference point here is the ASX200 chart for the same period.

View attachment 58579

I'm not particularly expert in the stock market, but given Dr Ralph's data investors obviously purchased stock in many different ASX top 200 companies when speculation started about WOW ditching QFF points.

Aside from my obviously sarcastic and cynical post I don't necessarily disagree with Dr Ralph. You frequent flyers, and I don't consider myself to fly often enough to be in that bracket, are a passionate but small minority. Only time will tell if a considerable number of Woolworth's shoppers are against the change and will vote with their feet.

Every stock doesn't have to mirror the ASX 200 or any other index. If the market didn't like the announcements the stock would have been punished. Reality is, it wasn't punished.

 

[BettyB]

Every stock doesn't have to mirror the ASX 200 or any other index. If the market didn't like the announcements the stock would have been punished. Reality is, it wasn't punished.

That's true. WOW certainly has not suffered as a result of the announcement. Time will tell if it has been a good move or not. But I'm certainly not jumping ship from Woolworths because of the announcements.

 

[drron]

What I get out of the chart is that I should have bought WOW on Friday and sold on Monday.

 

[zzyss]

Does anybody else think that by ditching their partnership with the national carrier, that they're also diminishing the "Australianess" aspect of their brand? Aside from all the customer value stuff, I think there's a lot of collateral brand damage in this as well.

 

[anat0l]

Does anybody else think that by ditching their partnership with the national carrier, that they're also diminishing the "Australianess" aspect of their brand?

Nah.......

 

[andye]

We can often make the mistake of assuming everyone is like us, making decisions for the same reasons, and with the same goals. It's easy to assume just because we have lost a perk, everyone else feels the loss. We can have a tendency to assume that our own demographic is the only group keeping a business profitable.
Applies to grocery stores, airlines and hotels.

Having said that the new scheme looks a real dog's breakfast. People aren't always logical however. It'd be fascinating if it was successful.

I can't see how it will make many customers swipe a WW loyalty card every time they shop which surely must be one of the most desirable aspects for the supermarket (ie collecting the customer info). A weakness of the EDR scheme too

 

[Mattg]

OK folks,

The first WW catalogue with the new Woolworths Dollar rewards has hit the streets. Prepare to be amazed (NOT!).

What follows is a list of the entire 23 items (2 pages of items) that earn WW Dollars in the catalogue. A further 39 pages in the catalogue (about 250 items) promote items that are not eligible for WW Dollars.

Good luck finding items that you actually want, let alone items that accrue that magical $10 discount on your next shop!

Item Price WW$ Discount %

Tip Top Cafe Extra Thick Raisin Toast 650 g or Cafe Breakfast Toast 650 g $5.80 $2.80 48.3%

Top earner (by percentage) this week: Tip Top raisin toast (48.3%)
Bottom earner (by percentage) this week: Chang Beer (4.7%)

I bought Tip Top raisin toast at Woolies on the weekend for $2.70! So in effect, the price after rebate has actually increased now by 30 cents. And you have to wait until you've potentially spent thousands of dollars to get the other $2.80 back!

I call "scam"....

 

[Mattg]

Another observation.... all the items earning Woolworths dollars appear to be packaged/processed goods. Will fresh fruit & veges or items from the deli ever have orange tickets?

 

[Himeno]

Another observation.... all the items earning Woolworths dollars appear to be packaged/processed goods. Will fresh fruit & veges or items from the deli ever have orange tickets?

Documents sent out to stores say that random weight products (ie, items sold by the kilo - most of the lines in the fresh departments) will not get orange tickets.
Look at the lines in the fresh departments that go on multibuy. They may at some point get orange tickets. eg, in the meat department - lamb legs - no. Sausages - maybe.

 

[eastwest101]

Another observation.... all the items earning Woolworths dollars appear to be packaged/processed goods. Will fresh fruit & veges or items from the deli ever have orange tickets?

Actually - if you look at the list provided - the list is also got a common theme of high-profit margin and previously "impulse buy" goods with large amounts of packaging, small serving sizes and high per unit costs, so pretty easy to see what the agenda will be for the orange ticket goods.

 

[greenfish]

Every stock doesn't have to mirror the ASX 200 or any other index. If the market didn't like the announcements the stock would have been punished. Reality is, it wasn't punished.

Or perhaps this is just one more minor disaster already priced in to a poorly performing stock; the woes of Masters together with the declining market share and poor performance compared to Coles hasn't done a lot for the share price for a while.

 

[zzyss]

Another observation.... all the items earning Woolworths dollars appear to be packaged/processed goods. Will fresh fruit & veges or items from the deli ever have orange tickets?

Not without more outrage in the news about how the supermarkets are screwing over farmers...

 

[rainbowgirl]

What about the Homebrand and the Select items?

I buy mostly generic items from Woolworths. Usually the only time I buy brand name goods is when there are half price specials on my favourite products. I doubt I'm going to get much in the way of Woolworths dollars from my regular products.

Of course, I'm hoping the targeted offers are a different story.