Coles trials new ‘FlyBuys Max’ program offering cut-price groceries

Hot on the heels of Amazon Prime, FlyBuys Max is the latest scheme being trialled by supermarket giant Coles to lure in customers.

The lucrative $3.1billion dollar online grocery market is growing at a whopping 12% every year. Currently, it’s being dominated by two supermarket giants — with Woolworths having 43% and Coles hot on their heels having 33% of the market.

But now, Coles is trialling a new subscription program that could end up drawing huge numbers of customers from its rivals.

The new program will offer members 5% off all fresh fruit, veg and meats at Coles supermarkets, plus free home delivery for all online grocery bills more than $50.

Membership fees for the trial are currently $10 per month, or $99 per year, and there’s potential to save hundreds on grocery bills over the year.

Instead of the discount, members can opt to earn 10 Flybuys points for every dollar spent on fresh produce, a step up from the standard rate of one point per dollar.

“If Flybuys Max comes into Australia the way it’s intended, this will be a game changer,” Dr Gary Mortimer from the QUT Business School said.

“One of the criticisms of loyalty programs is points fatigue, we never really know how many points we’re gathering but, Flybuys Max will actually be a very different program for what we’ve seen before in Australia.”

Over the next two months, the offer will be trialled on Coles staff, family, and friends. If it proves successful, it will be rolled out to general customers.

It’s certainly timely given Coles’ impending de-merger from Wesfarmers.

Meanwhile, Woolworths and BWS are making it easier for shoppers to earn rewards by simply tapping their phones using either Apple Pay or Google Pay.

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