Pick n Pay slashes Smart Shopper rewards

Image credit: Kevin Sutherland via Business Day

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.

@KeMohale PicknPay was on some we are getting the value back in cheaper products. I don't think they get how some of us used Smart Shopper points.

— Sharapova Apologist (@Gruntpova) April 4, 2017

@PicknPay halving their smart shopper rewards - to Spar and beyond!

— Sean Aspeling (@ItsAspeling) April 4, 2017

No more Pick n Pay smart shopper? What do you even mean? Mothers across the nation are gonna be so upset...

— Hloni_M (@hloni_maniers) April 4, 2017

I could deal with ratings downgrades and earthquakes and an empty jar of peanutbutter,but Smart Shopper points,Smart Shopper points??

— dan chaitowitz (@russianbearhunt) April 4, 2017

Pick n Pay never even warned smart shopper account holders that they're closing it, they just closed it? Wow must be that #junkstatus ��

— Mondly Shezi (@_Mondly) April 4, 2017