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Pick n Pay lays down marker by comparing prices [Mercury, The (South Africa)](Mercury, The (South Africa) Via Acquire Media NewsEdge) PICK n Pay's new coupon programme for customers may shake things up in food retail, as price competition gets keener and consumers keep their eyes on special catalogues. Pick n Pay said last week that Brand Match, launched on Sunday, would compare the prices of its 1 000 top-selling branded products with those at other supermarket chains. When a customer buys 10 or more different products, and at least one item is in the Brand Match basket of goods, it will trigger an instant price comparison at the till. If the selected products cost less elsewhere, the customer will receive a cash-off coupon worth that amount for their next shop, up to a maximum of R50. Chief executive Richard Brasher told Business Report that the Brand Match programme would save consumers time when comparing prices through catalogues or even by travelling from one to store to another. "Customers spend a lot time comparing prices, as they are looking for better deals." He said Pick n Pay was also embarking on the programme because it had reached a point where it was comfortable with its pricing. "We want to reassure people that we are confident about pricing and another important thing was that specials play an important role in people's lives these days as many are struggling with the rising costs of living," he said. Pick n Pay has spent more than six months developing Brand Match. "We wanted it to be as simple as possible for customers. No empty promises, no misleading offers, no complex guarantees - all you have to do is check your till slip at the end of your shopping," Brasher said. With the assistance of independent market research company Nielsen, Pick n Pay was able to select the list of the 1 000 branded grocery products that South African consumers spend the most on. The retailer will also work with two independent research companies to collate the prices of these products from a minimum of two stores per region every week. "I am excited about Brand Match. It shows our customers just how determined we are to give them the very best value. But it will also help us as a company. By comparing our prices against our competitors every week, we're putting pressure on ourselves as a team," Brasher said. This would encourage Pick n Pay to buy better, manage stock more effectively, offer more exciting promotions and find other ways to make life better for customers, he said. He said such programmes had been used in other countries and would not necessarily be a game changer. "We are not doing this in reaction to what other people have been doing. We do not even name the retailers we are checking." Pick n Pay was not the first local retailer to venture into coupon programmes. Checkers stores, which are part of the Shoprite group, introduced coupons in 2012. But, unlike Pick n Pay's price comparison, Checkers coupons are redeemed through a cellphone application called Eezi Coupons. Once a customer has downloaded the mobile application on their cellphone or tablet, they can view available coupons and redeem them at the till. The discount is taken off their total shopping amount and they are able to view savings at the bottom of the screen. Independent retail analyst Syd Vianello said Pick n Pay's coupon programme was a double-edged sword. "It could backfire if customers find out that they are actually not the cheapest retailer around." Pick n Pay Stores rose 0.88 percent to R57 yesterday. The Mercury (c) 2014 Independent Newspapers (Pty) Limited. All rights strictly reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |