Major South African Retailers Offer Cashback Services for Convenient Cash Withdrawals
Major South African retailers like Checkers, Shoprite, Pick 'n Pay, and Boxer now offer cashback services, providing customers with a convenient way to withdraw cash while shopping. This move comes as the supermarket industry continues to evolve, with online shopping gaining traction and groceries accounting for a significant portion of South Africans' incomes.
The cashback service is particularly appealing given the fees involved. Withdrawing R1000 from an ATM can cost R10, but opting for a cashback transaction at a grocery store typically incurs a much lower fee, around R2. This service is now available at major retailers, with Checkers and Shoprite commanding a combined market share of approximately 33% in 2023.
Shopping activity at these supermarkets remains consistent, with spikes observed from the 26th to the 29th. Checkers' Sixty60 orders contribute significantly to their total sales, representing 12.2%. Meanwhile, Spar trails closely behind Shoprite and Pick 'n Pay in preference rankings, indicating a competitive market.
Consumer spending varies among these retailers. Pick 'n Pay customers typically spend more than R420 per trip, while Shoprite's clientele may spend over R17 000. Despite these variations, both Shoprite and Pick 'n Pay are preferred by various consumer segments, demonstrating their broad appeal.
The introduction of cashback services at major South African supermarkets is a strategic move that caters to customers' convenience and cost-saving needs. As online grocery shopping continues to grow and groceries remain a significant portion of South Africans' incomes, these retailers are adapting to ensure they remain competitive and relevant in the market.
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