Better Budget: Grocery Loyalty Programmes

Supermarket loyalty programmes promise savings and rewards, but Consumer NZ research suggests the reality is more complicated. Understanding how these programmes work helps you decide whether they genuinely save money or simply encourage spending at higher priced stores.

The Current Loyalty Landscape

New Zealand has two major supermarket loyalty programmes. Woolworths (formerly Countdown) runs Everyday Rewards, which replaced the 20 year old Onecard system in 2024. New World operates Clubcard, which offers either Airpoints Dollars or Fly Buys points.

Pak'nSave does not have a loyalty programme, relying instead on consistently lower shelf prices.

Woolworths Everyday Rewards

The Everyday Rewards programme works on a simple points system. Every dollar spent at Woolworths earns one point, and 2,000 points converts to a $15 voucher redeemable at Woolworths or BP.

That means you need to spend $2,000 to earn $15 back, a return of 0.75 percent. Points expire six months after they are earned, so regular shopping is necessary to accumulate enough for a voucher.

Woolworths has partnered with BP, Vineonline, and ASB to provide additional earning opportunities.

New World Clubcard

New World Clubcard members choose between earning Airpoints Dollars or Fly Buys points. Both options require significant spending to generate meaningful rewards.

Consumer NZ calculated that earning a $100 travel voucher requires spending approximately $15,250 at New World through Fly Buys, or $13,514 for equivalent value through Airpoints.

The main immediate benefit comes from member only pricing on selected items throughout the store.

What Consumer NZ Found

Consumer NZ assessed 48 products with loyalty card discounts and compared prices at Pak'nSave and The Warehouse. Their finding was significant: three quarters of loyalty discounted products were available at equal or lower prices elsewhere without needing a loyalty card.

Their surveys consistently showed Pak'nSave offered the cheapest groceries overall. The recommendation was straightforward: rather than focusing on loyalty schemes, compare actual prices.

When Loyalty Cards Make Sense

Despite the mixed value proposition, loyalty cards can still be worthwhile in specific situations.

If you already shop at Woolworths or New World for convenience or product range, getting the free loyalty card captures some value from spending you would do anyway. Many sale prices are now member only, so without a card you pay full price.

For regular BP customers, the Woolworths partnership provides additional earning opportunities on fuel purchases.

Strategies for Maximum Value

The most effective approach combines loyalty cards with price awareness. Use a loyalty card at your preferred store but remain willing to shop elsewhere when prices are significantly better.

Focus on genuine specials rather than member only prices that merely match competitor everyday prices. Check the Grocer app or price comparison tools to verify whether a loyalty price is actually competitive.

Consider whether accumulating points toward travel rewards aligns with your goals, or whether immediate savings at a lower priced store serves your budget better.

Your Grocery Budget Priorities

For households focused on reducing grocery spending, shopping primarily at Pak'nSave or price matching across stores typically delivers better savings than loyalty programme rewards.

However, free loyalty cards at stores you visit regularly capture incremental value without requiring behaviour change. The key is avoiding the trap of shopping at a more expensive store simply to earn points.