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Big W Australia Loyalty: What Discount Department Retailers Can Learn

Big W was founded in 1964 in Griffith, New South Wales and has been part of the Woolworths Group since 1972. With over 175 stores across Australia, it is one of the country's most significant discount department store chains, competing with Kmart and Target (both Wesfarmers brands) for the Australian family household spend on clothing, toys, electronics, and homewares.

For independent Australian discount and variety retailers, Big W provides a useful case study in multi-format loyalty integration: the commercial advantage of connecting a discount department store's loyalty to a supermarket's loyalty infrastructure.

How big W Loyalty Works

Big W's loyalty operates through integration with Everyday Rewards:

Everyday Rewards earn on all qualifying Big W purchases. Customers who carry an Everyday Rewards card earn points on qualifying Big W purchases in the same way they earn on Woolworths supermarket and BWS purchases. The earn rate and redemption mechanics are consistent across the Woolworths Group ecosystem, simplifying the loyalty experience for members who shop across formats.

Combined Everyday Rewards balance. Big W spend accumulates into the same Everyday Rewards balance as supermarket spend. A member who makes large seasonal purchases at Big W (back-to-school clothing and stationery, Christmas toys, winter wardrobe refresh) earns significant points that boost the overall Everyday Rewards balance, which often redeems as Woolworths supermarket credit.

Big W app deals and member prices. The Big W app provides a selection of member prices and weekly deals for Everyday Rewards members. These app-activated deals provide a digital engagement layer that is specifically calibrated to Big W's categories (clothing deals, toy sales, home goods promotions) within the broader Everyday Rewards ecosystem.

Seasonal clearance and toy sale events. Big W runs significant seasonal clearance events including its Toy Sale (an annual Australian institution in July, coinciding with school holidays), a back-to-school sale, and clearance events at the end of each clothing season. Everyday Rewards members receive early notifications of these events through the Woolworths Group app ecosystem.

The Australian Discount Department Store Context

Australia's discount department store market has been significantly disrupted by the rise of online retail, particularly Amazon Australia, and the strength of Kmart's design-led value positioning. Big W has invested in digital commerce and click-and-collect integration to compete with both online and physical competitors.

The Australian consumer's expectation of loyalty programmes in general merchandise retail is shaped by the supermarket loyalty programmes: Everyday Rewards and Flybuys. When customers shop at Big W or Kmart, they expect their loyalty to translate across the Woolworths or Wesfarmers ecosystem. Big W's Everyday Rewards integration meets this expectation; Kmart has no equivalent cross-format loyalty integration.

Three Lessons for Australian Independent Discount and Variety Retailers

1. Explore coalition loyalty partnerships with complementary local businesses. Big W's Everyday Rewards integration is a corporate coalition at scale; an independent retailer can create a micro-coalition at the local level. A local toy and gift shop could partner with a nearby independent cafe and a nearby children's clothing boutique to create a neighbourhood loyalty earn: points earned at any of the three businesses accumulate in a single wallet, redeemable at any of the three. The coalition earn creates cross-referral traffic and a combined loyalty value that each business could not create alone.

2. Create a seasonal sale event that loyalty members hear about first. Big W's Toy Sale is one of the most anticipated seasonal events in Australian retail for families with young children. An independent toy, gift, or variety retailer can create the equivalent at boutique scale: an annual clearance sale announced exclusively to loyalty members 48 hours before the public. The advance notification reinforces loyalty membership value and creates word-of-mouth as members share the advance access with friends.

3. Use cross-category earn to increase basket size. Big W's Everyday Rewards integration earns points on every category: clothing, electronics, toys, groceries. An independent variety retailer can implement the same breadth by awarding loyalty points on every product category without exception. A customer who earns points on clothing, on a new toy, and on a household cleaning product in a single visit builds a meaningful balance faster than one who earns only on designated loyalty categories.

Big W vs. Australian Discount Department Store Loyalty Alternatives

BrandLoyalty programmeMulti-format earnDigital dealsAnnual sale eventDesign positioning
Big WEveryday Rewards (integrated)Yes (Woolworths Group)Yes (app)Yes (Toy Sale)Value-broad
KmartNone (no formal loyalty)NoApp dealsYes (varies)Design-led value
Target AUFlybuys (integrated)Yes (Wesfarmers)Yes (app)YesMid-market
Independent wallet passYour storeYes (coalition option)YesYesYour positioning

Getting Started

Big W's loyalty model demonstrates that multi-format earn is a powerful differentiator when customers shop across a portfolio of complementary retail formats. For an independent discount or variety retailer, the equivalent strategy is building a local coalition that makes its loyalty programme more valuable than any single-store programme could be.

For an independent Australian retailer ready to build a loyalty programme with cross-format earn potential and seasonal sale notification capability, LoyaltyPass provides the wallet pass and notification tools to run coalition loyalty arrangements, send seasonal sale early access notifications, and track cross-category earn. The product range and the community relationships are yours; the loyalty infrastructure is available from day one.

For context on how Australia's larger electronics specialist approaches loyalty without a traditional points programme, JB Hi-Fi Australia loyalty covers the utility-first digital engagement model and what Australian retailers can learn from the comparison.

Nora Kent

Written by

Nora Kent

Part of the LoyaltyPass editorial team. All articles draw on primary sources: brand announcements, industry research, and academic literature. Statistics are attributed inline. About our editorial team

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