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Tag: Priceline

  • Priceline says its loyalty program has hit 8 million members

    Priceline says its loyalty program has hit 8 million members

    Priceline Pharmacy will receive commissions from the sale of insurance products to the 3.9 million members of its customer loyalty program.

    The loyalty program, Sister Club, is one of Australia’s largest, providing rewards for money spent in Priceline’s health, beauty and pharmacy stores. Its intended clientele are women and it is promoted by Priceline owner Australian Pharmaceutical Industries as a ”key marketing differentiator”.

    Under a five-year deal with global insurer ACE, travel, accident-protection and health insurance products will be promoted to Sister Club members via electronic and direct mail.

    Priceline would receive commissions on sales, said Robin Moore, ACE corporate communications manager for Australia and New Zealand. ACE will manage telesales, customer service and claims.

    A similar deal struck in 2011 with life insurer AIA ended this year. API declined to say how much revenue that agreement had delivered.

    A spokesman said API was confident that the insurance offering, Priceline Protects, ”enhances … our members’ experience”.

    Under the deal, ACE has no authority to sell or use Sister Club data for any other purpose than insurance products.

    ”It is important to note that members can opt out of receiving offers regarding Priceline Protects at any time,” the spokesman said.

    Australian Privacy Commissioner Timothy Pilgrim said that when people signed up to a customer loyalty program they should read the privacy policy to find out how the business would use their information, who else would see it and how it would be stored.

    ”Businesses that are covered by the Privacy Act are required to comply with several principles when handling personal information, including information collected for a loyalty card scheme,” he said. ”For example, companies are required to have a publicly available statement or privacy policy that tells people how they handle personal information.

    ”There are also rules about when businesses can share your personal information with others.”

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  • Priceline Pharmacy launches health insurance

    Priceline Pharmacy launches health insurance

    Priceline Pharmacy has launched a unique health insurance brand and products in partnership with health fund nib.

    The launch of the health insurance products sees Priceline Pharmacy become the first pharmacy retailer to offer this to its customers.

    The cover includes all the stuff people would typically expect with private health insurance but the real benefits are the Priceline perks thrown in for good measure.

    “Priceline has operated as a health and beauty destination for over 40 years. We are constantly looking to provide products and services that our customers want and Priceline Health Insurance now provides an extension of our brand’s trusted pharmacy offer,” General Manager, Priceline Pharmacy, Andrew Vidler said.

    “There is no other health insurance product like this: from $5 vouchers, which accrue with every $50 purchase (and I can tell you they add up quickly!) to offering annual flu vaccinations through more than 370 Priceline Pharmacies around Australia.

    “It’s important to us that our Franchisees who operate these local pharmacies in their communities will also see these new health insurance customers in their stores and create even more loyal Sister Club members for our brand,” he said. 

    Priceline says the pharmacy brand is leveraging the power of its Sister Club program. Specifically, Priceline health insurance members will receive Sister Club bonus points for every $1 spent on the premium and a $5 voucher for every $50 spent in Priceline and Priceline Pharmacy stores.

    Additionally, Priceline says that health insurance members will also be bumped up to automatic ‘Pink Diamond’ status, which is the highest status a Sister Club member can attain. This comes with numerous benefits including more $5 vouchers and gifts for birthdays and Christmas.

    Additionally, every health insurance customer will reportedly receive an annual flu vaccine at Priceline Pharmacy.

    nib’s Chief Executive Australian residents’ health insurance, Ed Close said the launch of Priceline health insurance presented a unique and exciting opportunity, particularly for the more than seven million Sister Club members.

    “As one of Australia’s largest loyalty programs, Sister Club members will benefit from a bespoke range of best-in-class health insurance products, but with the bonus of Sister Club points on joining and when they pay their premium, making sure they get ongoing value from simply being a Priceline health member,” Mr Close said.

    “In addition, we will be able to use Priceline’s national pharmacy network and digital assets to provide an enhanced service offering as well as ongoing customer benefits.”

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  • Priceline expands partnership with IRI

    Priceline expands partnership with IRI

    Market research company IRI announced a significant expansion to its partnership with Priceline on Monday morning which will help the pharmacy deliver an improved range for customers.Priceline will use IRI technology to support category management and improve planning and collaboration with supplier partners, which will ultimately lead to the improved range, convenience and price for Priceline customers.

    “I am very pleased that we are able to announce our expanded partnership with IRI,” David Ginsberg, head of buying for Priceline said in a statement.

    “We already have a good understanding of our Priceline customer, however joining forces with a global leader in big data and analytics will allow us to further strengthen our knowledge and, more importantly, improve their experience when shopping in our stores.”

    Paul Hinds, managing director Asia Pacific for IRI, said the partnership will find new ways to “delight and engage” Priceline customers.

    “This partnership will augment our knowledge and result in better and faster decision making,” Hinds said.

    “Together with our supplier partners, we will have a more holistic view of our customers and be able to better anticipate and cover their current and future needs.”

    “Fifth straight year of growth”

    The partnership comes alongside Roy Morgan research which notes 23.3 percent of Australian women purchase cosmetics from Priceline – almost double the figure from four years ago.

    In fact, Priceline is beaten only by Supermarkets for market share in the beauty category, which holds 24.9 percent of the market.

    “The cosmetics industry is a very competitive one with pharmacies and chemists, supermarkets, department stores, and discount department stores all vying to increase their share of the market and looking for an edge to retain existing customers and draw in new ones,” Roy Morgan chief executive Michele Levine said.Adtech Ad

    “Meanwhile, Priceline is enjoying its fifth straight year of growth in the market, fueled by a hardcore base of 18-24-year-olds and successful use of the growing online channel.”

    This age category is Pricelines bread and butter, according to Levine, who notes that almost half (41.5 percent) of 18-24-year-old women who purchased cosmetics in an average six month period did so at Priceline.

    “No other retailers are seeing even close to this level of market power over a particular age group,” Levine said.

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  • API doubts Sigma plans

    API doubts Sigma plans

    The proposed merger between the owners of the Priceline and Amcal pharmacy chains is off after Sigma Healthcare rebuffed an approach by its rival.

    Amcal owner Sigma, which is restructuring after losing a contract to supply Chemist Warehouse, said on Wednesday that October’s cash-and-scrip approach by Australian Pharmaceuticals Industries had undervalued its long-term prospects.

    Instead of responding with an increased offer, API questioned Sigma’s plans and said it would now decide what to do with the 12.85 per cent stake it bought late last year.

    “The Sigma Board has chose a path to restructure its significantly downsized business, rather than pursue a merger to create a future that benefits consumers, pharmacists and both sets of shareholders,” API said.

    Sigma said it agreed the tie-up could save the combined company $60 million a year through supply chain consolidation, but that a business review completed last month found $100 million in potential savings through cost-cutting as a stand-alone company.

    It also said that a decline in API’s share price also meant the offer was worth 12 per cent less than when it was made in October.

    The offer was worth about $727 million when it was made public in December.

    API countered by saying the cost savings that Sigma was citing were uncertain and unclear, and would mostly be offset by revenue lost by Chemist Warehouse’s decision to take its business elsewhere.

    It also pointed out its offer represented a 41.8 per cent premium to the average price of Sigma shares in the month before the offer was announced.

    “API notes that very little information has been provided by Sigma in relation to its intended restructure,” API said.

    Sigma shares slumped on the development, dropping 14 per cent to 52.5 cents by 1423 AEDT, their lowest since before the merger proposal was made public.

    API shares were down 3.57 per cent, at $1.35.

    Sigma is the owner of franchise brands Amcal, Chemist King, Discount Drugs and Guardian.

    API owns the Priceline, Soul Pattinson and Pharmacist Advice brands.

  • Improved penalty rates and conditions for Priceline workers

    Improved penalty rates and conditions for Priceline workers

    Retail workers’ union SDA has secured a new agreement for Priceline Pharmacy workers that improves penalty rates and leave conditions for staff.

    The new agreement, which came into effect on Friday March 8, will see annual pay increases backdated from July last year, through to July 2020.

    “Wage growth for Australian workers is at an all time low and we’re proud we’ve been able to lock in strong annual pay increases for Priceline workers for the next three years,” SDA national secretary Gerard Dwyer said.

    “Priceline workers will receive an immediate 3.5 per cent pay increase backdated from 1 July 2018, and 3 per cent pay increases from 1 July 2019 and 1 July 2020. This means the permanent hourly rate for Priceline workers will increase to A$21.81 and the casual hourly rate will increase to A$27.26 per hour. With the rate of inflation at 1.8 per cent these pay increases will make it a little easier for Priceline workers and their families to make ends meet.”

    The new agreement also includes five days paid and five days unpaid Family and Domestic Violence Leave for all employees per year.

    “Unions, employers and government must all take responsibility for addressing family and domestic violence and we’re pleased we’ve taken the first steps in this agreement,” said Dwyer.

    Workers will also be paid superannuation on all paid leave, including paid parental leave. The SDA said this will help address the gender pay gap, as previously superannuation was not paid when parental leave was taken.

  • Priceline books slow down beauty sales

    Priceline books slow down beauty sales

    Priceline owner Australian Pharmaceutical Industries’ half-year net profit has fallen by 14.4 per cent to $24.9 million on lacklustre retail sales from its retail pharmacy network.

    Underlying net profit after tax, excluding $1.8 million of restructuring and strategic growth costs, was down 8 per cent on the prior corresponding period to $26.8 million, slightly ahead of API’s January guidance.

    Underlying earnings before interest and tax (EBIT) declined by 8 per cent to $44.6 million in the six months to February 28, constrained by a .3 per cent decline in top line revenue to $2.009 billion.

    The company said that a continuation of difficult trading conditions in the health and beauty market hampered its Priceline network, which booked a 1.7 per cent decline in comparable store sales and a .3 per cent decline in retail register sales.

    Sales growth in dispensary and OTC health products offset declines in discretionary beauty products, with total network sales, which include dispensary, up 2.1 per cent.

    “We have refined our tactical sales activity, which is now more targeted and responsive to changes in the increasingly competitive market,” API chief executive and managing director Richard Vincent said.

    “Despite the combination of consumer sentiment being challenging for the foreseeable future and increased competition, the strength of our combined marketing assets, particularly our Sister Club loyalty program, continues to be the primary source of sales growth.”

    Vincent said he anticipates a continuation in difficult trading conditions in the second half, but that Priceline will focus on cost out opportunities to improve earnings for the full-year.

    API expects its underlying FY18 result to be marginally higher than FY17, providing trading conditions do not deteriorate further.

    There were 466 stores trading in the Priceline network at the end of the half-year, an increase of 16 during the half.

    Vincent said Priceline’s pipeline of potential pharmacy partners remains “robust” but maintained his view that “unrealistic rental demands” were putting a damper on store expansion.

    API’s pharmacy distribution network experienced stronger growth than Priceline, increasing underlying sales by 9.8 per cent on the prior corresponding period.

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