Flybuys, Australia’s largest rewards program, recorded its first profit since its inception 32 years ago, posting a modest after-tax gain of $1.86 million for the fiscal year 2026. This turnaround comes amid an ongoing cost-of-living crisis that has led shoppers to increasingly rely on loyalty schemes to help offset rising grocery and household expenses.
The program’s renewed popularity has coincided with growing economic pressures including inflation, higher interest rates, and increased fuel costs. These factors have driven more consumers to seek additional value from loyalty points, not only at Coles stores—one of Flybuys’ key partners and co-owners—but also across the wider network of 20 affiliated retailers such as Bunnings, Kmart, Target, Officeworks, and Optus.
Flybuys’ membership grew by 3.6 percent in 2026, reaching 10.3 million active users. The total value of goods and services redeemed through Flybuys points rose to $546.9 million during the year. This increase in engagement helped reverse several years of losses; the company reported losses of $26.85 million in 2023, $36 million in 2024, and $10.65 million in 2025, largely due to substantial investments in technology and back-end operations.
Despite turning profitable, Flybuys continues to depend on capital support from its joint owners, Coles and Wesfarmers. In 2026, the business received $15 million in capital injections in exchange for additional shares issued to the parent companies. Both Coles and Wesfarmers view the rewards program as a strategically important asset, generating valuable customer data that supports their broader retail operations.
Since Coles’ demerger from Wesfarmers in 2018, Flybuys has operated as an independent entity. The current board includes executives from both parent companies, such as Coles chief operating officer Matt Swindells—appointed Flybuys chairman in April—and other senior leaders from Coles Liquor, Wesfarmers, Officeworks, and Bunnings.
Flybuys chief executive Anna Lee highlighted the company’s focus on simplifying the business and enhancing member value over the past three years. “We’ve built a much stronger and more sustainable Flybuys, delivering a profit in fiscal 2026, which provides a solid foundation to continue investing in better value, experiences, and opportunities for our members,” she said.
Coles CEO Leah Weckert emphasised the program’s role in supporting customers facing financial pressures, noting that Flybuys helps reduce grocery bills through personalized bonus point offers redeemable in Coles and Liquorland stores. To further assist consumers, Coles will allow members to accumulate Flybuys points until mid-December and redeem them for discounts of up to $400 on store purchases.
Woolworths, a rival retailer, has observed similar trends with its Everyday Rewards program. Woolworths CEO Amanda Bardwell stated that the program has been instrumental in helping customers manage rising living costs by providing personalized offers and additional value on everyday shopping. Woolworths continues to focus on delivering dependable low prices in combination with the loyalty program to support household budgets.
As economic challenges persist, loyalty schemes like Flybuys and Everyday Rewards are becoming increasingly vital tools for Australian consumers seeking to maximise their purchasing power amid rising expenses.