For most of us, free loyalty programs—like Flybuys and Everyday Rewards—are an easy win in a time when every dollar counts.
But what about the paid memberships that Coles and Woolworths are now offering? They’re the next level, and promise more discounts and exclusive deals, but are they worth the monthly fee?
Coles Plus Saver vs. Everyday Rewards Extra
The paid programs from Coles and Woolworths are almost a mirror image of each other with both charging $7 a month for 10% off one shop a month, plus double points on all shops.
The exception is that Woolworths offers a discount of $14 if you pay the membership fee annually, which is the equivalent of two free months.
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| Everyday Rewards Extra | Coles Plus Saver | |
|---|---|---|
| Cost | $7 / month ($70 / year) | $7 / month |
| Monthly discount | 10% off one shop /month, up to $50 off | 10% off one shop /month, up to $50 off |
| Rewards points | 2x Everyday Rewards points at Woolworths (plus Big W) | 2x Flybuys points at Coles (plus First Choice Liquor, Liquorland) |
| Added extras? | Exclusive offers | Exclusive offers |
How much can you save with a supermarket membership?
The actual value of these memberships hinge on you—how many mouths you have to feed, how frequently you shop and of course where you shop.
Canstar Blue research shows that the average Australian family of four spends around $260 a week on groceries. If that family pays the $7 monthly fee and uses their 10% discount on one standard shop, they’d save $19 a month, after paying the fee.
Add the bonus points on top of that, and, if you do all your shopping at Coles, the total amount saved could tally up to $296.
For Woolworths, the savings are potentially slightly higher if you opt to pay your membership annually.
Coles Plus Saver – potential savings per month
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| Membership cost | $7 |
| Savings from 10% off one $260 shop | $26 |
| Savings from extra Flybuys points (redeemed as money off shop) | $5.63 |
| Total savings | $24.63 |
Note: assumes a weekly shop of $260 at Coles. Redemption for Flybuys is at $10 increments, per 2,000 points.
A word of caution: a big monthly shop might not be as smart as you think
To maximise that 10% discount, the strategy for many is to do one huge shop a month. But be careful you’re not letting that discount get in the way of a good deal.
If you’re stocking up on staples like toilet paper, cereal, or pasta on one specific day, you might be buying them at full price for the sake of a 10 per cent discount. A smarter strategy? Target what’s on special when you do your big shop and you could see savings on some items of over 50 per cent.
To truly game the system, a big family might consider signing up for both programs. Yes, you’ll be paying $14 a month, but you’ll get two shops at 10% off every month, giving you more flexibility to chase the specials. You can then fill in the gaps with your smaller, in-between shops at a lower cost supermarket like Aldi.
This won’t work for everyone but if you are footing a decent-sized grocery bill and you already shop at the main two supermarkets, it’s worth a look.
Delivery subscriptions: the next level
Both Coles and Woolworths also have separate delivery subscription programs, aimed at the growing number of Australians who shop online.
Coles vs Woolworths – delivery subscriptions
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| Coles | Woolworths |
|---|---|
| $19 per month ($199 / yr) | $15 a month ($119 / yr) |
| Min order: $50 | Min order: $75 |
| $1.50 bag fee per shop | $2 bag fee per shop |
Source: Canstar Blue
The value depends on how often you get your groceries delivered. If you’re ordering online multiple times a month, this could be a worthwhile investment for busy families, especially when you factor in costs of fuel and the time you save.
The Costco model: an entirely different beast
Costco’s membership is a different program altogether. Unlike the other supermarkets, you can’t even get in the door without paying a membership fee.
The basic Gold Star membership is $65 a year, which gives you access to the warehouse and its famously low-priced, bulk products which can include anything from its famous roast chicken, to 25kg bags of flour to sushi platters, even Apple Air Pods and Dyson hair dryers.
For the serious bulk-buyer, there’s the Gold Star Executive membership for $130 a year, which promises a 2% annual reward on eligible purchases. Just be mindful of the fine print, as this reward only applies to eligible items and not on the GST portion of the bill. It’s only paid out once a year, after you pay your next membership fee. If you cancel before then, you forfeit this reward.
Costco membership prices
Gold Star – $65 / year
- Access to Costco stores
- Discounted petrol and tyres
- Exclusive discounts & offers
- Additional membership – 1 person / household
Gold Star Executive – $130 / year
- 2% annual reward
Are free supermarket rewards programs worth it?
While paid memberships offer compelling savings, let’s not forget the power of the free programs.
According to the latest Canstar Blue awards, the winner for Most Satisfied Customers in Rewards Programs is Coles’ Flybuys program for the third year in a row.
Flybuys won across all seven categories, including:
- value
- range of partner stores, and –
- ease of redemption.
The key to getting the most out of these free programs? Join all of them. The free rewards programs aren’t limited to Coles and Woolies. Dan Murphy’s, Priceline, Myer and David Jones all have rewards programs. And remember, these programs are not charities. They’re designed to get you spending, so by all means game the system but make sure the system isn’t gaming you.
Tips for getting the most out of your rewards programs
No loyalty: Don’t limit yourself to one supermarket. Shop at both Coles and Woolworths, and check out Aldi for the staples. There is no room for loyalty when you’re trying to save money.
Scan everywhere: Add your loyalty card to your phone and make it a habit to scan your card at all participating stores. The Woolworths program works with Big W and BWS while Coles’ Flybuys works at Bunnings, Kmart, Target, Officeworks which means you can earn points on everything from a pencil sharpener to a new lawn mower.
Resist the marketing. These rewards programs are a lucrative business for the big retailers. They’re designed to get you spending, so understand they’re going to use your details to spam you with emails. If you know you can get easily swayed, stay away. The points are unlikely to be worth it.
Use points boosters with caution. Points boosters come with the same warning… sure, you can activate them, but if, as a result, you’re suddenly buying more expensive brands or worse still, things you won’t actually use, then the program is getting the better of you.
Consider frequent flyer points: While many people redeem points for money off their shop, know these points can also be converted to frequent flyer points – with Qantas for Woolworth Everyday Rewards points and Velocity for Flybuys points. You take a hit when you convert them as they basically halve, but if you can make some smart redemptions for flights that you were otherwise going to pay for, or a flight upgrade to treat yourself, then you could get greater bang for buck.
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