Pick n Pay Pay back the money!
Pick n Pay’s Smart Shopper programme has been something of a textbook case: big, fast, and popular, driven by meaningful benefits to customers and providing Pick n Pay itself with loyal shoppers and valuable data in heaping measure. Smart Shopper, you will recall, provides punters with points to the value of a cent on every rand spent instore, which may be redeemed on any purchase at the register. Now Pick n Pay are adding a credit facility to the card, which offers shoppers 55 days to pay before the whopping interest rate of 21% kicks in. The rate will also apply on bigger purchases, like fridges or cellphones. The facility, currently being piloted, can be used at Pick n Pay stores, including clothing stores nationally, but you cannot use the associated card at ATMs. The move appears targeted at shoppers who might face a cash flow crunch towards the end of the month. “So, we are developing a new Pick n Pay store account to help customers manage their grocery spend in an environment where the cost of credit can be extremely high,” says Richard van Rensburg, Pick n Pay’s deputy CEO.
Comment: An interesting strategic move that comes with a cautionary to shoppers who are unable to clear their debt before the 55 day grace period expires.