Pick n Pay is expanding its loyalty programme with FNB to attract more customers and reclaim market share from competitors. Effective April 1, all FNB customers will earn eBucks points on their purchases, enhancing customer engagement as the retailer aims to recover from declining sales.
In a strategic move to regain lost market share, South Africa’s Pick n Pay announced an expanded loyalty programme partnership with First National Bank (FNB). This initiative aims to attract FNB’s customer base and bring back shoppers amid increasing competition from larger rivals such as Shoprite. Under the new programme, effective from April 1, all FNB customers will be eligible for rewards when shopping both in-store and online at Pick n Pay.
The company has been facing declining sales and has implemented multiple strategies since mid-2022, including store renovations and the closure of unprofitable locations. Chief Executive Officer Sean Summers highlighted the effectiveness of these measures, stating that they have already witnessed a positive impact on customer traffic in stores. The loyalty programme initially launched in November, targeting high-income clients, will now cater to a broader customer segment.
FNB customers will receive up to 30% of their spending as eBucks loyalty points, which can later be converted into cash. This expanded offer has already led to a noticeable increase in shopping activity at Pick n Pay. Notably, clients who previously accounted for less than 20% of their grocery purchases at Pick n Pay now represent approximately 90% of the increase in spending since the inception of the programme.
Moreover, eligible FNB customers have reported a remarkable 98% surge in online shopping since the programme’s launch, in addition to a rise in spending on clothing at the retailer. This partnership reflects an effective collaboration aimed at enhancing customer experiences and bolstering sales performance for Pick n Pay.
The expanded loyalty programme between Pick n Pay and FNB represents a significant step towards improving customer engagement and reversing declining sales trends. By broadening accessibility to the rewards programme and incentivizing shopping through eBucks, both companies are likely to see enhanced customer loyalty and increased transactions. This initiative underscores Pick n Pay’s commitment to reclaiming its position in the competitive grocery sector.
Original Source: www.marketscreener.com
