Pick n Pay expands its loyalty programme with FNB to attract more customers. The initiative aims to recover market share lost to competitors like Shoprite. All FNB customers will earn up to 30% back in eBucks points, driving increased spending and engagement. Early results indicate significant growth in customer loyalty and online sales.
Pick n Pay, a leading grocery retailer in South Africa, has announced an expansion of its rewards programme in partnership with First National Bank (FNB). This initiative aims to attract FNB’s customer base and recover market share lost to larger competitors like Shoprite. Following the appointment of CEO Sean Summers in late 2023, the company is seeking to improve its recent performance, which has seen declining sales.
To combat these challenges, since mid-2022, Pick n Pay has undertaken various initiatives, including revamping stores, closing unprofitable locations, and enhancing customer loyalty strategies. “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,” Summers stated during the announcement of the expanded programme.
Originally launched in November, the loyalty programme was restricted to high-income clients. However, the new version will allow all FNB customers, both in-store and online, to earn up to 30% back in FNB’s eBucks loyalty points, effective April 1. These points can be converted to cash, incentivizing customers to shop at Pick n Pay.
FNB executives reported a significant increase in spending by eligible customers at Pick n Pay since the programme began. Notably, those who initially spent less than 20% of their grocery budget at Pick n Pay now account for 90% of the spending growth. Additionally, the programme has led to a 98% rise in online shopping among FNB’s eligible customers, while clothing sales have also increased significantly.
In conclusion, Pick n Pay’s partnership with FNB marks a strategic effort to reclaim market share amidst market challenges. The expansion of the loyalty programme to all FNB customers not only aims to drive store traffic but also reflects a commitment to enhancing customer engagement and retention. Early data suggests encouraging results, particularly in online shopping and overall spending, indicating a potential turnaround in performance for the retailer.
Original Source: www.marketscreener.com
