NEWSWATCH: Pick n Pay has announced steep cuts to it popular Smart Shopper rewards programme, essentially halving the value of the cash rewards in the pursuit of personalisation.
According to Moneyweb, as of 30 March cashback points will be earned for every R2 spent at stores, from R1 previously. This effectively halves the cashback rate to customers from 1% to 0.5%.
Business Day reports that according to Pick n Pay management, a key feature of the overhaul would be weekly personalised discounts tailored specifically to individual Smart Shoppers based on shopping habits. The aim is to give customers more than R500 in personal discounts over the year.
“With the new Smart Shopper, Pick n Pay will be offering 30-million personal discounts every week or three discounts per customer every Thursday for 10-million customers,” the company said.
The news comes just a few weeks after the retail giant announced it had committed more than R500m to cutting prices on more than 1,300 essential items. Analysts told Business Day that retailers are caught between offering discounts in tough economic conditions and protecting margins.
Smart Shopper, since its launch in 2011, has consistently been voted as one of South Africans’ favourite rewards programmes, no doubt due to its generous nature. The public’s initial response to the programme overhaul has not been one of support.