Pick n Pay Expands Loyalty Programme to Engage FNB Customers

Pick n Pay is expanding its loyalty programme partnership with FNB to attract bank customers and regain market share. The initiative follows years of poor performance and aims to improve sales through various strategies, including the up to 30% cashback through eBucks for all FNB customers. Notably, spending at Pick n Pay has surged among FNB clients since the programme’s launch.

In a strategic move to reclaim its market position, South Africa’s Pick n Pay announced an expansion of its partnership with First National Bank (FNB), aiming to attract the bank’s clientele and restore customer loyalty. This initiative follows the retailer’s losses in market share to competitors, including Shoprite, particularly in light of the company’s difficult performance leading to the appointment of Chief Executive Sean Summers in late 2023.

To combat declining sales, Pick n Pay has initiated a series of measures since mid-2022. These initiatives include the refurbishment of stores, closure of underperforming locations, and innovative loyalty schemes to better serve customers. 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”.

The loyalty programme, originally launched in November and initially restricted to high-income clients, will now allow all FNB customers to earn up to 30% cashback in eBucks, effective April 1. These points are redeemable for cash, thus incentivizing more customers to shop either in-store or online at Pick n Pay.

FNB officials reported a notable increase in spending at Pick n Pay among eligible clients since November, with a remarkable shift observed where those who previously spent minimal amounts have now become frequent shoppers. Pieter Woodhatch, CEO of FNB’s eBucks division, noted that this customer segment accounts for about 90% of the spending increase. Moreover, eligible customers have also driven a 98% rise in online shopping and increased expenditures on clothing since the inception of the programme.

In summary, Pick n Pay’s expansion of its partnership with FNB highlights the retailer’s strategic efforts to enhance customer loyalty and recover from declining sales. By broadening access to its rewards programme and providing significant cashback incentives, the company aims to attract a wider audience and increase engagement with FNB’s customer base. Innovative changes such as these demonstrate Pick n Pay’s commitment to revitalizing its business amidst growing competition.

Original Source: www.marketscreener.com