Bunnings launches NZ loyalty scheme, shoppers need $500 spend for $5 reward

Bunnings New Zealand managing director Melissa Haines said the scheme had been worked on for an extended period. Photo / NZ Herald, Dean Purcell

Bunnings’ largest competitor in New Zealand, Mitre 10, has its own loyalty scheme called Mitre 10 Club.

Instead of earning rewards points, members gain access to monthly deals not on offer to those without a membership.

Mitre 10 Club members also gain access to a monthly “Scan & Win” prize draw.

Bunnings also launched a similar scheme earlier this year for business customers called PowerPass Pro Rewards.

Haines said the scheme was partly designed in reaction to consumer behaviour, agreeing that most customers are prioritising value out of every transaction.

She said the business took several years designing the scheme and experimented with multiple options.

“Because there are so many different loyalty programmes in the New Zealand market, we considered all of their pros and cons, and ultimately decided that, because of that, this simplicity factor, the direct-to-customer focus was the best mechanism.”

Haines said the platform’s simplicity allowed for possible future expansion, potentially for features like exclusive deals.

Bunnings’ new loyalty scheme will reward active members for every dollar they spend, although the bonus may not be as much as you think.

Consumer NZ spokesperson Jessica Walker said the group was not generally fans of loyalty schemes.

“They work well for businesses – they breed a sense of loyalty in consumers, but consumers don’t always reap benefits from being loyal.

“For example, staying loyal to a particular business because you’re part of a programme, or chasing reward points, could mean you’re missing out on a better price somewhere else,” Walker said.

Walker said businesses use customer data to learn more about their shopping habits, keeping them within the store.

“We encourage people to shop around for products. Read the small print too – find out exactly what data you’re trading in return for those loyalty points.”

Bunnings financials

Haines also gave an update on Bunnings New Zealand’s performance, describing it as consistent over the last financial year.

Bunnings reported its wider Australasian performance last week, confirming total sales had lifted 4.1% year-on-year to A$20.3 billion.

“Our sales and our ebit [earnings before interest and tax] line were growing in the same shape as the Australian business.

“It was a much-improved performance, and really happy to see growth across both the consumer and the trade side of the business for the last year.”

Bunnings New Zealand’s official figures, which are not made clear in the wider financials, will be published later this year.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

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