Driving top-line sales growth has never been tougher for retailers. Pick n Pay is aiming to tackle this challenge in part with its just-introduced store card, which comes with the lure of interest-free short-term credit. It is not the first store card offered by a food retailer. Also out there are store-card credit offerings from Woolworths and Massmart’s Game and Makro divisions. However, Pick n Pay has clearly done some hard bargaining with the credit provider, BNP Paribas’s RCS division, to make sure its store card is the most cost-effective in its sector. "We have worked with RCS to design a product that has the lowest possible monthly fee and no hidden costs," said Pick n Pay deputy CEO Richard van Rensburg in a media statement. He continued: "Pick n Pay will not earn income from the credit-granting process." Pick n Pay’s store card, which for customers granted credit will be incorporated into their Smart Shopper loyalty card, carries no charge for opening, no transaction charg...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.