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PIK - Pick N Pay Says `Thank You` in South Africa`s First Major Grocery Loyalty

Release Date: 17/03/2011 15:00
Code(s): PIK
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PIK - Pick N Pay Says `Thank You` in South Africa`s First Major Grocery Loyalty Programme Pick n Pay Stores Limited (Incorporated in the Republic of South Africa) (Registration number: 1968/008034/06) Share Code: PIK ISIN code:ZAE000005443 PICK N PAY SAYS `THANK YOU` IN SOUTH AFRICA`S FIRST MAJOR GROCERY LOYALTY PROGRAMME Retail giant Pick n Pay today launched South Africa`s first major grocery chain loyalty programme as part of its business strategy, enabling the retailer to build a stronger relationship with its customers in years to come. The total capital investment is some R140-million. Pick n Pay`s new loyalty programme "Smart Shopper" is aligned to global best practice. "We`ve been researching consumer appetite for loyalty cards in South Africa for a number of years, and looked to global best practice for inspiration," said Nick Badminton, Pick n Pay`s CEO. "What is clear is that a loyalty scheme does not create loyalty in itself. Rather, it is a medium that allows a retailer like Pick n Pay to say `thank you` to customers for their loyalty, in proportion to how much the customer spends. At Pick n Pay, we felt the time was right to do exactly that," said Badminton. In the early 2000s, Pick n Pay considered launching a loyalty programme, but felt at the time that technology was not sufficiently advanced for it to do so. "However, advances in technology within Pick n Pay have improved so much since then that we are now able to run the programme efficiently and in a way that makes sense to customers. This means that we`ll be able to talk directly to them and their needs by understanding and acting on their requirements," said Badminton. Over the past few years, Pick n Pay has invested significantly in global and local research. This shows that there are numerous of benefits of well-run loyalty programmes: significantly increased value to the customer; benefits of employing customer-centric retailing strategies across pricing, promotions and ranging; improved trade through very targeted marketing and responding directly to customers` needs; an increase in asset value from taking more customer- centric informed business decisions regarding site acquisition; store re-fits and format planning; roll-out of new services and ranges; and successful joint ventures with suppliers. Pick n Pay has launched a number of key strategies over the past three years, including creating a more streamlined supply chain. The efficiencies and successes achieved in its major R628 million distribution centre in Longmeadow, Gauteng, will be followed by the rapid rollout of four distribution centres around the country within the next three years. In addition, the rollout of the retailing solution, SAP, meets all of Pick n Pay`s requirements for comprehensive information. "In light of these changes, the loyalty programme is a significant and innovative way in which we can ensure that the great value we consistently offer our customers becomes even more rewarding. We felt we needed to develop a programme that was not `just another card`. It has to be simple and easy to use, whilst incorporating our values," said Badminton. "Loyalty programmes are not new to South Africa, but to date there has been no dominant grocery loyalty scheme that allows customers to benefit from rewards on almost every item in their basket. Swiping, points, cash back and coupons are all familiar and attractive concepts for customers. Together with our longstanding reputation for offering fantastic value to our customers, Smart Shopper translates into `great value has just become more rewarding`". Pick n Pay is partnering in the launch of `Smart Shopper` with six key suppliers: Coca-Cola, Kimberley-Clark, Nestle, Tiger, Unilever and Vodacom. Participation will be extended to other national suppliers after the launch. Pick n Pay`s strategic implementation partner is international CRM consultancy 5one, part of the LaSer Group. 5one has a proven international track record in delivering sales and margin improvements through the design and implementation of customer-centric business and trading strategies. "Including the Franchise operations, we currently run at over 50 million transactions per month. Smart Shopper gives our customers a vast number of opportunities to swipe at the till and receive the benefit of their spending in stores," said Bronwen Rohland, Pick n Pay`s Marketing Director. Said Rohland: "This programme is integral to our brand promise to customers - "Inspired by you". That is the promise that we will consistently develop fresh ideas and bring them to life. That we will continue to find ways to make our customers lives better and make their money go further. That`s why Smart Shopper is, and always will be, clear and transparent, and provide a real customer benefit, beyond the financial rewards." Smart Shopper has been designed as a very easy three-step process of signing up, swiping and switching points to spend or share Rands once cardholders have collected 1,000 points. Importantly, and in keeping with Pick n Pay`s sustainability focus, when switching their points, customers will soon be able to elect to donate to a charity or environmental cause instead. By order of the board Cape Town 17 March 2011 Sponsor: Investec Bank Limited Date: 17/03/2011 15:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). 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