Coles LOSES money on Flybuys but it loves it and so should you: Here’s why
The loyalty scheme lost the retailer $18 million this year, but it still pays off.
You can't move in a Coles supermarket without seeing Flybuys promoted.
So it might surprise you to learn that on paper, Flybuys isn't actually profitable.
Coles owns 50% of Flybuys (the other half is owned by Wesfarmers, its former corporate parent and major shareholder).
In its annual results out today, Coles revealed that its 50% stake had technically lost it $18 million.
But Coles doesn't care, because Flybuys drives its customers to spend more.
It recorded $43.6 billion in sales across the year. Compare to that, $18 million is a drop in the ocean.
This isn't a new phenomenon. We saw the same thing last year, when Coles' stake technically cost it $13 million.
Total membership of Flybuys reached 9.5 million, up 5.3%.
How to get more from your Flybuys points
Of course, you shouldn't care if Coles loses money. But you should care about saving on your shopping and travel, and Flybuys is key for that.
The most popular use of Flybuys is to score $10 off your shopping every time you earn 2,000 Flybuys points.
That's become easier this year, as you can claim $10 off immediately at the checkout, rather than going through a fiddly redemption process.
You can also redeem for points at Liquorland and First Choice Liquor.
Those changes mean 2 million Flybuys members redeemed their points for the first time this year, Coles said.
To really get the most from your Flybuys, consider converting them to Velocity Points rather than $10 off vouchers.
By my calculations, you can get twice as much value that way.
It's also worth signing up for Coles Plus Saver, which is now available nationwide after a trial in Victoria.
For $7 a month, you get 10% off one shop a month and double Flybuys points on ever shop.
The average Coles shopper spends $170, Finder research shows, so 10% off would get you $17 off.
That means you're ahead even after paying $7 - and you'll score twice as many Flybuys points throughout the month.
Want to keep your frequent flyer points balance growing? Check out the latest credit card sign-up deals.
