Woolworths uses groceries to discount smartphones

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Woolworths uses groceries to discount smartphones

Woolworths has made an offer other smartphone resellers can’t match: $600 off your grocery bill if you buy a handset and a plan on its virtual network.

The offer was first made in late January, but quietly, Today, the supermarket giant made it central to its pitch as a source of Samsung's new Galaxy S20 range, a handsome collection of three next-generation handsets priced between $1349 and $1849.

Woolworths' offer includes $250 off the price for new and existing customers, and free wireless headphones. for those who buy the handset on a Woolworths Mobile Phone Plan.

And then there's the grocery discount.

The offer isn’t simple: customers get a 10 percent discount on one shop a month, provided that shop takes place on designated days and doesn’t exceed a total of $500.

That means a potential discount pool of $600 across a year, if you dance to Woolworths’ tune and show up to shop when it tells you to.

Other sometimes retailers also offer big incentives on premium handsets: JB Hi-Fi sometimes offers hundreds in gift vouchers for those who sign up for Telstra plans with posh handsets. But those offers seldom appear on the same day that a new premium handset debuts – they’re instead used once demand wanes.

By joining the major telcos in pushing the offer on the same day as Samsung’s device debut, Woolworths is clearly trying to shake up premium handset sales.

Woolworths can’t match the in-store phone-handling experience or sales patter that mobile carriers’ extensive retail networks deliver. But it’s shown it can make up for that in other ways, by tweaking its Fresh Food branding to also make it a viable choice for Fresh Phones.

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