Discovery Vitality, the rewards programme focused on encouraging healthy habits for Discovery medical aid members, has ended a decade-long health benefits partnership with embattled retailer Pick n Pay.
Instead, it has started a new partnership with Pick n Pay’s arch rival, Shoprite Holdings-owned Checkers, the operator of the popular Checkers Sixty60 on-demand grocery delivery service.
“On 1 September 2024, the Vitality HealthyFood benefit will be updated to include Checkers and Checkers Sixty60 alongside Woolworths in store and online, Woolies app and Woolies Dash. Sadly, we’ll be saying farewell to Pick n Pay as a HealthyFood partner,” read an e-mail to Discovery Vitality members on Wednesday afternoon.
Discovery Vitality appreciates the longstanding relationship with Pick n Pay that has enabled Vitality members to get rewarded
Discovery told TechCentral that the Vitality HealthyFood benefit will continue at Pick n Pay until 31 August. This includes online orders through Pick n Pay Asap!, a direct competitor to Sixty60.
Discovery announced its new partnership with Checkers in September 2023. At the time, it cited “changes to shifting shopping habits” as its reason for updating the HealthyFood benefits to “give members the choice of an in-store and an online grocery partner”.
“Grocery delivery has become wildly popular, with a marked increase in the number of households that use a combination of in-store and online channels to buy groceries. This year (2023), 34% of Vitality members who ordered groceries online did so at least weekly, testament to the increasing reliance on online grocery purchasing due to the convenience it offers,” Discovery Vitality said in a statement at the time.
Checkers Sixty60 is by far the most popular grocery delivery platform in South Africa, having grown sales by 58% year-on-year in the 52 weeks to end-June 2024, according to an operational update from Shoprite Holdings this week.
Pick n Pray
Meanwhile, positive online sales growth of 75% for the 52 weeks ended 25 February 2024 at Pick n Pay was one of few standouts in an otherwise bleak set of results. The group scrapped its dividend after reporting a loss after tax of R3.2-billion. The trading loss in the Pick n Pay stores business came to R1.5-billion compared to a trading profit of R1.3-billion a year before, it said.
Pick n Pay has since embarked on a two-step recapitalisation plan, which includes a rights offer. It also plans to list better-performing Boxer separately to “unlock the value of the Boxer asset for Pick n Pay and its shareholders”.
“Discovery Vitality appreciates the longstanding relationship with Pick n Pay that has enabled Vitality members to get rewarded for their HealthyFood choices. Discovery and Pick n Pay will continue to partner in other respects, including the ability to spend Discovery Miles by choosing Pick n Pay as a reward option in the Vitality Mall.”
Moneyweb first reported the news about Discovery’s decision earlier on Thursday. – © 2024 NewsCentral Media
