Discovery Vitality, the rewards program designed to promote healthy habits among Discovery medical aid members, has ended its decade-long partnership with retailer Pick n Pay. The program will now partner with Checkers, owned by Shoprite Holdings, known for its Checkers Sixty60 on-demand grocery delivery service.
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Starting September 1, 2024, the Vitality HealthyFood benefit will include Checkers and Checkers Sixty60, in addition to existing partner Woolworths, available in-store and online through the Woolies app and Woolies Dash. The partnership with Pick n Pay, including its online platform Pick n Pay Asap!, will end on August 31, according to an email sent to Vitality members.
Discovery announced its new partnership with Checkers in September 2023, citing shifts in shopping habits as a primary reason for updating the HealthyFood benefits. The change aims to provide members with both in-store and online grocery options. The company noted the growing popularity of grocery delivery, with 34% of Vitality members ordering groceries online weekly in 2023, underscoring the convenience of online shopping.
Checkers Sixty60 has emerged as the leading grocery delivery platform in South Africa, with a 58% year-on-year sales increase reported in the 52 weeks ending June 2024, according to Shoprite Holdings. In contrast, Pick n Pay reported a 75% increase in online sales for the 52 weeks ending February 25, 2024, but overall faced challenging financial results, including a R3.2-billion loss after tax and a R1.5-billion trading loss in its stores business.
In response to these financial challenges, Pick n Pay has initiated a two-step recapitalization plan, including a rights offer, and plans to list its better-performing Boxer stores separately to unlock value for shareholders.
Despite the end of their HealthyFood partnership, Discovery Vitality acknowledged the positive relationship with Pick n Pay, noting that they will continue to collaborate in other areas, such as offering Discovery Miles as a reward option in the Vitality Mall.
