Milking deals for groceries with Coles’ new my5 loyalty scheme

PHIL JACOB
The Daily Telegraph
May 14, 2012

SAVVY shoppers have surpassed forecasts for how much they can save through Coles’ new my5 loyalty scheme, choosing products that will cut their supermarket bills by nearly $250 a year – 23 per cent more than anticipated.

The first data from the discount offer plan – which offers 10 per cent off five preferred grocery products – reveals Coles-brand two-litre milk is the most popular choice. Bananas are second, followed by minced beef, Helga’s bread and Coles brand three-litre milk.

Other items which feature prominently on my5 lists are 24-packs of 375ml Coke, or its sister soft-drinks, and Kleenex 12-pack toilet rolls.

Assuming the typical customer bought toilet rolls, one size of milk and 24 cans of Coke every week, the likely saving would be $4.75 – or $247 a year. When Coles launched my5 as part of a revamped FlyBuys scheme, it predicted customers would save about $200 annually.

Under the new scheme shoppers spend $50 and earn 50 FlyBuys points worth 25c. Previously they only received 20 points worth 16c.

The reforms follow criticism from disenchanted shoppers who have taken years to redeem meagre vouchers for small items such as toasters.

Coles CEO Ian McLeod said with the cost of living on the rise, Australian families were looking to save money where they could.

“It’s clear from the products Australia has chosen that customers are looking to save on key staples and the things they buy for their families every week,” Mr McLeod said.

CommSec chief economist Craig James said FlyBuys were becoming more popular as people became cautious with their spending habits.

“The thing is, most people have the money to spend, it’s just they don’t want to spend,” Mr James said.

“There is so much uncertainty about the carbon tax and utility prices going around right now it’s forcing people to shop around for bargains.”

Consumer watchdog Choice spokeswoman Ingrid Just urged customers to always look for best value.

“Any reward program is designed to get you continually back to their store, so while any savings are great, it’s always good to see if there are even better savings available out there,” she said.