Coles has taken the supermarket war with Woolworths to loyalty programs, with the relaunch of its FlyBuys card which will enable customers to cash in loyalty points and save hundreds of dollars a year on their grocery bills.

The supermarket giant will send the new FlyBuys card to almost every household in Australia on Monday and blitz the airwaves with ads pushing the new scheme.

Coles hopes the loyalty card is the next step in its bid to claw back market share and win customers. Credit:Sasha Woolley

It is one of the largest mail outs in Australian history with more than eight million FlyBuys cards sent out.

It will cost the company tens of millions of dollars but Coles boss Ian McLeod believes the loyalty card is the next step in its bid to claw back market share and win customers.