Pick n Pay is expanding its loyalty program with FNB to attract more customers. This initiative follows efforts to improve sales performance after years of market share loss. All FNB customers will now benefit from rewards points, with significant increases in spending and online shopping observed since the program’s launch.
In an effort to enhance its market position, South Africa’s Pick n Pay is expanding its rewards program in collaboration with First National Bank (FNB). This initiative aims to attract FNB’s extensive customer base as well as to regain lost shoppers. Following several challenging years, the grocery retailer anticipates improved performance under new CEO Sean Summers, who took the helm in late 2023.
To combat declining sales, Pick n Pay introduced multiple initiatives beginning mid-2022, including renovating stores, closing unprofitable locations, and implementing new customer loyalty strategies. CEO Sean Summers emphasized the efficacy of these efforts, stating, “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, the loyalty program, launched in partnership with FNB in November, catered exclusively to high-income clients. However, the expanded program will be accessible to all FNB customers shopping either online or in stores, starting April 1. Participants can receive up to 30% of their expenditures back in FNB’s eBucks loyalty points, which can be converted into cash.
Since the program’s inception, FNB has reported increased spending among participants. Notably, FNB clients who previously bought less than 20% of their groceries at Pick n Pay accounted for 90% of the observed rise in sales. Additionally, eligible customers have demonstrated a 98% increase in online shopping since November, accompanied by heightened spending on clothing, according to FNB executives.
The partnership between Pick n Pay and FNB marks a strategic effort to reclaim market share and attract new customers. By broadened access to the loyalty program, the supermarket aims to incentivize spending among FNB’s client base, which has already shown promising engagement in online shopping and grocery purchases. This collaboration signifies a potential turnaround for Pick n Pay as it seeks to enhance its competitive stance in the market.
Original Source: www.marketscreener.com
