Retailer Pick n Pay said on Thursday that it has granted R1 billion total credit to shoppers since launching its credit facility in September last year.
The service, which designed in conjunction with credit company RCS, a local subsidiary of BnP Paribus Bank, enables customers to pay for their goods at a later date on a card with no joining fees and low interest rates.
“The account is accessed through the customer’s Smart Shopper card, with the credit provider carrying all associated funding costs and credit risk. Since the launch in September, 56,000 store account holders have been approved and just over R1 billion total credit has been granted,” Pick n Pay said in a statement.
“It offers the most affordable form of credit in the market, with a 55 days free credit payment option, no joining fee, no hidden administration fees and the lowest monthly fee in the market,” the retailer said.
Pick n Pay on Thursday (19 April) published its annual financial results for the year ending February 2018. Turnover grew 5.3% to R81.6 billion, while trading profit climbed 4.9% to R1 819.9 million
Diluted headline earnings per share amounted to 271.61 cents, up 7.7%
In the first half of the year Pick n Pay implemented a voluntary severance programme (VSP) which improved efficiency and productivity, but had a once-off cost of R250 million in severance payments. Excluding these VSP payments, trading profit for the year was up 19.3%, with trading profit margin improving from 2.2% to 2.5%, the group said.
“Through the VSP and other actions, the Group has built a leaner, fitter operating model, with more headroom to give customers lower prices and better promotions. The benefits were evident in an exceptional Q4 trading performance, with the Group’s South African segment delivering sales growth of 8.0% (LFL 5.3%).”
Pick n Pay has partnered with TymeDigital – a subsidiary of the Commonwealth Bank of Australia – providing its customers with greater access to banking services.
The partnership leverages off Pick n Pay’s extensive store and IT infrastructure and Commonwealth Bank of Australia’s extensive digital banking expertise. During the year, its money transfer service attracted over 300,000 new customer registrations.
The service enables real time, digital customer validation at an in-store kiosk, allowing customers to send money transfers from any till point once they are registered. Pick n Pay now has 160 money counters across the country.