Priceline (Australia)

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Priceline is a large health and beauty store which operates currently in all Australian states and territories. It is currently owned by Australian Pharmaceutical Industries since its purchase in 2005. Priceline was originally founded in 1981, the first store in Highpoint, Victoria. Priceline will launch a new identity on September 1, 2008 including new collaterial material, store layout and signage and advertising. A new slogan will also be adopted; Look Good, Live Well, Feel Great.

1 Organisation Structure
2 Clubcards
3 Controversies
4 References
5 Links

[edit] Organisation Structure

Priceline has two divisions: Priceline Pharmacy and Priceline retail outlets.

Priceline retail stores sell beauty, health and confectionery products. Some also sell a limited amount of domestic products, for example laundry power and toilet paper. They do not have an on-site pharmacist and do not carry pharmacy products. Most don't carry baby products. The largest Priceline retail outlet is in Melbourne in the Centrepoint mall on Bourke Street. In March 2007, the Centrepoint store held a week-long promotion with in-store cosmeticians giving free makeovers. Priceline retail stores are run by a Store Manager, appointed by the Priceline Head Office. All profits made by the store are channelled into the division. As of mid-2007, some Priceline Retail stores have been franchised out to an independent buyer.

Priceline Pharmacies are franchised. The on-site pharmacist usually owns the store. A retail manager is usually appointed to oversee the non-pharmaceutical items in the store. Priceline Pharmacies have a more limited general product range, usually not carrying particular cosmetic lines (Physicians Formula, Pupa, and Living Nature are some examples) or more general household products, however they carry medications and can fill prescriptions. Priceline Pharmacies also occasionally carry lines not carried in retail-only Priceline stores, such as Elizabeth Arden cosmetics. During promotions, prescription purchases aren't counted in totals to receive the free gifts advertised (eg. spend $50 get a free tote bag) and no Clubcard points are earned. Priceline Pharmacies also usually offer a Seniors' Discount on all non-prescription purchases in the store.

[edit] Clubcards

Priceline also has a "Clubcard". When someone signs up, the in-store introduction brochure includes a temporary card which the member uses until their plastic one arrives in the mail. Clubcard numbers can also be entered manually into the register if the member prints off a "temporary card" via the Priceline website. Clubcards operate on a reward-scheme basis- points are earned for every dollar spent over $5, and when the member earns more than 100 points in a three-month period they receive a discount voucher in the mail, to the value of 3% of their spend. Bonus points, separate from the points earned from the purchase, are processed and added separately on to the member's account and are thus not listed on the docket. Bonus points often form part of promotions, for example when the L'Oreal Telescopic Mascara was released, members earned 100 bonus points when purchasing them during a certain catalogue in March 2007. Clubcard points are not retrospective and cannot usually be earned after the completion of a sale.

[edit] Controversies

Andrew Cruickshank, a store layout planner, was dismissed from his job in November 2006 from Priceline for "operational reasons" under the new WorkChoices Legislation. He alleged Priceline fired him on his $101 000 a year contract, replacing him with someone on a $75 000 contract. Priceline claimed otherwise, "It was not the same role...the person wouldn't have been capable of doing the same things"^[1]. The AIRC found in Priceline's favour, "The question of a 'valid reason' need not be considered when an argument is advanced regarding the termination being for operational reasons"^[2]. Priceline retrenched 32 other staff at the same time, as a result of an operating loss of $17.2m. Prime Minister John Howard condemned Priceline and other firms seeking to fire workers and rehire at lower wages, "operational reasons are not and should never be seen as code for saying, 'Well I'll get rid of "X" because I'm paying him $100,000 a year so I can employ "Y" at $80,000 a year.'"^[3]

[edit] References

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