Coles’ lure for loyalty
Coles Myer is planning a “big bang” approach to revamping its loyalty schemes. By mid-2003 the retailer will beef up the Fly Buys program, offer a fuel discount card and a new store credit card.
The plans are part of a strategy to ward off any consumer backlash arising from further cuts to its shareholder discount scheme. Coles Myer's CEO John Fletcher said there would be no further cuts until Fly Buys was improved and the new cards available.
The decision to phase out the shareholder discount card was made early in 2002 and from mid-2002 the average shopper’s discount was cut from 6 per cent to 3.89 per cent. However, an announcement about the size of the next cut and when it will occur has not yet been made. It's expected the reduction will be to about 2 per cent by mid-2003 and a total phase-out to be complete by July 2004.