Countdown rebranding to Woolworths: What happens to your Onecard?

Woolworths Kensington, Whangarei in 2010. Photo / NZME

Countdown is promising a new customer loyalty programme which it says will provide “more value and a materially improved fresh offer” along with its announced $400 million rebranding and refurbishment.

The timing of the changes was described by Consumer NZ as “interesting”, as many others are questioning why it is coming amid a cost of living crisis. The consumer watchdog also derided loyalty schemes in general.

The supermarket announced last week it was ending its partnership with AA Smartfuel, meaning shoppers would no longer get points for fuel discounts with every spend.

Details on any new offers remain scant.

The supermarket giant will revert back to Woolworths from early next year.

Countdown is promising a new customer loyalty programme which it says will provide “more value and a materially improved fresh offer”. Photo / File, Hayden Woodward

Countdown director of loyalty Mark Wolfenden said a new loyalty scheme would give “more personalised value and experiences”.

“We look forward to sharing more detail about that programme later this year,” Wolfenden said.

When the Herald pushed for more details, a spokeswoman said: “No comment from us to add at this stage. We will share more in the coming months.”

An email to Onecard holders said: “For now, keep using your Onecard as usual.”

Currently, Countdown’s Onecard members are offered a 3 cents per litre discount for every $100 spent in one week or 6 cents per litre for $200 spent which are redeemable at BP and Gas outlets.

E-vouchers, worth $15, are also rewarded for every $2000 spent. These can be used towards shoppers’ next purchase or donated to charity.

Onecard holders can also get deals on Club Price products.

A spokeswoman for Consumer NZ said loyalty programmes “distort competition, and [can make it hard] to tell who genuinely has the cheapest [price]”.

“We think many of these schemes collect more data about the customer than the customer probably realises,” the spokeswoman said.

Last year, a Commerce Commission market study into supermarkets found they were making excess profits of around $1 million a day.

Te Awamutu's Woolworths supermarket in 2009. Photo / NZME

In its report, the commission concluded competition was “not working well” in the supermarket sector.

Consumer NZ’s spokeswoman said: “We have been vocal about our concerns that fundamental aspects of the supermarket sector are not working; we think it’s interesting that a rebrand is being prioritised right now.”

On the soon-to-be wound-up fuel discounts, Countdown’s Wolfenden said cardholders would be able to redeem rewards they have earned when the loyalty programme ends.

“Countdown’s partnership with AA Smartfuel and Countdown’s Onecard programme will conclude in early 2024. All of the current terms and conditions continue to apply until then,” Wolfended said.

AA Smartfuel director Ian Sutcliffe said the programme would end its run early in the first quarter of next year after partnering with the Australian-owned supermarket chain since 2016.

The history of Woolworths in New Zealand

● 1929: First Woolworths store opens in Wellington’s Cuba St, trading as a general merchandise store.

● 1958: First Foodtown owned by Progressive Enterprises store opens in Otahuhu, Auckland.

● 1981: Rattrays Wholesale Group establishes Countdown Supermarkets and opens its first store in Northlands, Christchurch.

● 1993: Countdown and Foodtown business come under Woolworths New Zealand ownership.

● 2005: Australian Woolworths Ltd acquires FAL and its Progressive Enterprises stores, including the Woolworths New Zealand chain.

● 2009-2011: All Woolworths and Foodtown stores rebrand to Countdown.

● 2018: Progressive Enterprises changes its name to Woolworths New Zealand.

● 2023: Countdown announces rebrand to Woolworths Supermarkets New Zealand.

Raphael Franks is an Auckland-based reporter who covers breaking news. He joined the Herald as a Te Rito cadet in 2022.