November 04, 2011 8:19AM
SUPERMARKET spies are using loyalty card details to capitalise on buying habits.
Products bought are being electronically logged, while card holders receive personalised promotions based on their spending habits.
Woolworths revealed yesterday that tracking the buying behaviour of its 8.4 million Everyday Rewards card holders was part of its strategy to boost its sales.
“Using customer insight from loyalty cards has proven results,” Woolworths’ director of supermarkets and petrol Tjeerd Jegen said.
In other consumer news, milk sold at $1-a-litre is good for Australians and most dairy farmers are unlikely to be hurt by price cuts, an investigation has found.
The result after a nine-month investigation gives major supermarkets such as Coles, Woolworths and Aldi the green light to keep selling cheap home-brand milk, the Herald Sun reports.
The federal Senate Economics Committee looking into supermarket discounting recommends a review of competition and consumer laws in light of the “very strong position” Coles and Woolworths have in Australia, however.
It also recommends a study into the future of the dairy industry in northern states.
The committee report says major supermarkets should be able to continue to sell milk for $1-a-litre and “retail price cuts should not be discouraged”.
“The committee has been troubled that the benefits gained by consumers have not received sufficient attention,” the report, tabled yesterday, says.
“Price discounting is likely to be pro-competitive . . . most dairy farmers will not be significantly worse off because of the price cuts.”
The report has been welcomed by Coles, which started a price war in January by aggressively discounting home-brand milk, a move quickly followed by Woolworths and Aldi.