Macquarie Group estimates Woolworths Group Everyday Rewards loyalty program (9.8 million active members) accounts for 60 basis points of Woolworths’ operating margin. At Coles Group, the Flybuys loyalty program delivers 30 basis points of Coles’ operating margin. The earnings of both supermarkets would be hit if the ACCC competition watchdog dismantles their loyalty schemes as part of its investigation into market power. If they were completely unwound (unlikely) Macquarie estimates earnings drops over the next three years of 18% at Woolworths and 8% at Coles. The ACCC findings going to the government in February.