A reduction in the Shareholder Discount Card rates took effect on 31 July, 2002.
As we outlined when our strategic plan was launched in March, this is the first of a series of rate reductions that will see the Shareholder Discount Card Plan wound up on 31 July 2004.
Just to recap our strategic thinking on loyalty programs, we believe they should be equally accessible to all customers regardless of who they are. Longer term we want to spread the benefits by rewarding our customers based on what they spend rather than whether they hold shares.
While the phase-out of the Shareholder Discount Card has now begun we have commenced an on-going and broadly accessible promotional program designed to reward customer loyalty. These offers are designed to support our broader strategy to provide the best value and the best service to our customers, day-in, day-out.
Shareholders wishing to clarify any information may contact our shareholder hotline on 1300 130 278.
Summary of the March 2002 Announcement about the Changes to the Shareholder Discount Plan
A comprehensive explanation of the changes to the Shareholder Discount Plan was provided to qualifying shareholders on the share register at close of trade on 5th April, 2002, by mail with their dividend cheque/advice in mid-May 2002.
The key points of the Changes to the Shareholder Discount Plan were:
Shareholders as at 5th April, 2002 would continue to enjoy revised discount privileges until 31st July, 2004
Discount rates current at that time would apply until 30th July, 2002. New reduced rates would be introduced on 31st July, 2002, with a further review of the rates occurring during 2003.
No new members would be admitted to the discount program after 5th April, 2002.
Discount privileges will not be conditional on continued share ownership after 5th April, 2002.
CMLC shares reverted to ordinary CML shares on 12th April,2002
Membership fees ceased to be charged for participation in the discount program.
Coles Myer is committed to treating all of its stakeholders equally and therefore we believe these changes are important to our future success.
CML Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
