Pick n Pay Expands Loyalty Programme Targeting FNB Customers

Pick n Pay has expanded its rewards programme with First National Bank to attract more customers and recover lost market share. Under the new scheme, all FNB customers can earn up to 30% back on their purchases as eBucks points. The initiative follows various strategies to enhance performance and has already resulted in increased spending at Pick n Pay and a surge in online shopping.

Pick n Pay, a prominent South African grocery retailer, has announced an expansion of its rewards programme in collaboration with First National Bank (FNB). This initiative seeks to engage FNB’s customer base and recover lost market share, as the company has struggled against competitors such as Shoprite over the years. Chief Executive Sean Summers, appointed in late 2023, is spearheading efforts to revitalize the company’s performance.

In response to declining sales, Pick n Pay implemented multiple initiatives beginning mid-2022, including store renovations, the closure of less profitable locations, and the introduction of new customer loyalty strategies. At an event revealing the partnership’s expansion, Summers stated, “All of the things that we are doing … it’s what’s getting customers back into our stores, and we can already see it’s starting to turn.”

Originally launched in November, the initial version of the loyalty programme catered to high-income FNB clients. The newly expanded programme will enable all FNB customers to earn up to 30% back on their purchases at Pick n Pay, either in-store or online, beginning April 1. Purchases will yield eBucks loyalty points, which may be converted to cash.

FNB executives reported an increase in spending at Pick n Pay by programme-eligible clients since the programme’s launch. Notably, those customers who previously purchased a small fraction of their groceries at Pick n Pay now account for approximately 90% of this increase. Pieter Woodhatch, CEO of FNB’s eBucks division, noted that many have begun to consider Pick n Pay their primary grocery store.

The loyalty programme’s success is underscored by an astonishing 98% rise in online shopping among FNB’s eligible customers since November. There has also been a noted increase in expenditure on clothing, indicating positive trends related to the programme.

In conclusion, Pick n Pay is taking significant steps to regain market share by expanding its rewards programme with FNB. This collaboration not only aims to attract FNB’s extensive customer base but has already demonstrated a considerable increase in spending, particularly among new shoppers. The positive outcomes observed since the programme’s initiation suggest a revitalization of Pick n Pay’s performance in the competitive grocery market.

Original Source: www.marketscreener.com