Struggling Pick n Pay banks on massive FNB eBucks rewards perks as it fights back at Checkers

Published Oct 31, 2024

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In a bid to regain momentum in the supermarket retail war with Shoprite, the struggling Pick n Pay group has partnered with FNB to offer eBucks rewards hunters more bang for their bucks.

Shoppers could be saving a bit extra this month as retailer Pick n Pay has partnered with First National Bank to offer customers up to 30% back on their spend in eBucks, the highest of any retailer thus far.

The rewards bonanza is expected to start in November.

A breakdown

As of November 1, qualifying FNB Private Banking eBucks customers (FNB Private Clients, Private Wealth together with RMB Private Bank) can earn up to 30% of their spend back in eBucks when using Pick n Pay’s asap! on-demand delivery service, and up to 20% back from all items purchased at Pick n Pay in-store.

The asap app is a direct competitor to the popular Checkers Sixty60 delivery app, which has revolutionized the industry.

FNB customers can also receive up to R100 vouchers to spend at Pick n Pay/Pick n Pay Clothing stores.

The retailer said that clothing has been added as a new category, with customers on Aspire getting up to R150 back in eBucks, and Premier through to Private Clients, Private Wealth and RMB Private Bank earning up to 20% back.

All FNB cardholders who are on eBucks are now able to spend their eBucks in a Pick n Pay store from November 2024.

Other retailers

As it stands now FNB customers will get the most back - at most 15% more - if they purchase through the various Pick n Pay portals when compared to other SA retailers.

If you purchase your groceries at Spar predominantly the most you can earn back is 15%.

Picture: FNB

If Checkers is your main grocery retailer then you only earn at most 15% back through the eBucks system.

Picture: FNB

And if you use Shoprite as your main retailer then you can also only earn as much as 15% back in eBucks rewards.

Picture: FNB

It should be noted that the percentage you earn back depends on your reward level and if you pay with your physical card, you'll earn up to 1% back in eBucks depending on your FNB account.

It remains to be seen if the FNB shoppers will swap their grocer, for added eBucks rewards.

A push to get more people in the door

Earlier this week, Pick n Pay released its latest financial results and despite the group’s efforts to become more profitable, the company posted a R827.4 million loss for the interim period of 26 weeks ending August 25, 2024.

The group noted that its financing costs were R1.13 billion for the year, and this resulted in a pre-tax loss of R1.05 billion, a further decline of 25.7% from 2023.

Pick n Pay said that it trading losses grew by 9.1%, in line with budgets, to R718.9 million, due to the financial year 2025 gross profit margin contraction.

There is therefore a huge drive to push more people into Pick n Pay stores as the company tries to become solvent.

IOL BUSINESS