Woolworths Group’s Everyday Rewards loyalty program will offer members 20% discounts for kids and babywear clothing at Big W as part of a new member pricing initiative.
Everyday Rewards had 14.5 million members by the end of FY23, up by 750,000 on FY22.
The sale will run in-store and online until Wednesday, October 4 next week. It is part of Everyday Rewards’ new member price initiative, available in-store and online at Woolworths Supermarkets, Woolworths Metro and now Big W.
Everyday Rewards managing director Hannah Ross confirmed this is the first time Big W has been integrated into member pricing.
“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,” Ross said.
“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.”
The 20% discount excludes Halloween and party costumes and accessories.
The promotional initiative comes as Big W saw a slowdown in consumer spending in the latter half of FY23, particularly in the fourth quarter.
Woolworths Group CEO Brad Banducci said Big W customers are buying only what they need, which has led to a decline in items purchased compared to the prior year.
“The trading environment for Big W changed dramatically between H1 and H2,” Banducci said. “After delivering a strong H1 result, we indicated in February that the H2 EBIT (earnings before interest and tax) contribution would likely revert to more typical seasonal patterns.
“H2 ended up below our initial expectations as customers cut back on discretionary items, particularly in Q4, and the sector became extremely competitive with higher levels of promotions and discounts.”
Banducci said while Big W’s FY23 EBIT of $145 million was more than doubled on the prior year, its H2 FY23 EBIT of $11 million was below H2 FY23. This was reportedly due to flat sales, higher promotional activity across the market and rising unit costs driven by team wage investments.
“Pleasingly, our customer scores remained strong, including value for money metrics, and digital interactions continue to grow,” Banducci said. “We also launched Cartology in Big W during the year with 175 screens in store by year end.”
The recent Everyday Rewards offer to Big W customers comes as the low-price retailer launched Everyday Extra for Team this year. It includes an extra 5% discount for team members every month and the ability to earn three times as many Everyday Rewards points on every shop at Woolworths and BIG W.
This is in addition to an existing discount of 5% off every shop and an additional 5% extra on Woolworths’ Own Brand items and BIG W clothing.