BIG W has followed Woolworths lead, introducing Everyday Rewards membership pricing. The retailer is facing slowed sales as it enters FY24.
Today, BIG W has announced plans to launch the new Member Pricing initiative in its stores and online. It will be launching the program with a 20 percent off promotion on children’s and babywear. Everyday Rewards Managing Director Hannah Ross said: “We are excited to bring Everyday Rewards Member Pricing to life for the first time in BIG W with exclusive savings on kids and babywear.
“We know families in particular are looking for value every time they shop with us and we are focused on delivering this through Everyday Rewards.
“Our Everyday Rewards program helps members save hundreds of dollars every year by scanning their card and boosting offers and this is just another example of the value members can unlock.”
Earlier this month, Woolworths added special membership pricing across its network to offer more value for Everyday Rewards members. Reception wasn’t completely positive with some shoppers outraged, concerned that this will force people to hand over their data in order to make ends meet in a cost of living crisis. Controversially, some shoppers claimed the member price is not a deal at all, but rather an opportunity to rise the standard prices on products which Woolworths has denied. Netizens have also expressed concern about elderly shoppers and those who struggle with tech being unable to navigate through the sign up process.
BIG W’s implementation of Everyday Rewards member pricing follows Woolworths Group’s FY23 results release last month, in which a trading update revealed the budget department store is facing declining sales in Q1 FY24. The FY23 results for BIG W may have showed an 8 percent revenue increase in FY23 to $4.8 billion, however, its H2 slow down has continued into 2024.
“BIG W sales momentum continues to be challenged with sales down approximately 6 percent in FY24 to date,” said Woolworths Group CEO Brad Banducci. “While BIG W is being impacted by the broader discretionary spending slowdown in Australia, some categories like Everyday Essentials are performing strongly. Loyal customers are continuing to shop with BIG W, and we are seeing some trading-in but customers are cautious, putting fewer items in their baskets. The outlook for the remainder of the year is uncertain and as always, trading in Q2 will be key to the full year results.”