REX: Casino Reports Encouraging Results for their Brazilian Subsidiary
In the end of 2017, Casino introduced a credit card for their cash & carry subsidiary in Brazil, Assaí. They now report encouraging results and fast adoption rates. These figures can be accounted for by a favourable local context where this retailer recorded strong growth dynamic.
The Passaí card first allows customers to benefit from wholesale prices on per-unit items, and 50% off movie theatre tickets or other events. It comes along the points-based loyalty program Mastercard Surpreenda.
This card is issued by Itaú Unibanco, with applied APR of roughly 8.9% per month, or among the highest applicable credit card rates in Brazil. Some services are also proposed: Itaucard mobile management app, SMS-based alerts, instalment payments for bills, warranties on purchases, insurance coverage in case the cardholder’s bag or mobile phone is lost or stolen, etc.).
Assaí introduced this card in December 2017, and it already attracted 300,000 customers: more than 50,000 account openings per month.
Comments – A credit card to increase sales and secure cash & carry customers’ loyalty
According to Casino, the GPA group (their Brazilian subsidiary) has been recording strong growth for their cash & carry business, in a weakened economic context where customers are drawn to these grocery banners. In Q1 2018, GPA’s revenue increased by 7.5% compared to the year before (reaching €2.7 billion). Assaí’s sales alone increased by 10.3% over the same period.
For the Passaí card, they rely on compelling incentive since wholesale prices are applied to all purchases the cardholders make. This driving factor ensures that customers actually use it when visiting Assaí stores however this universal means of payment can be used anywhere Mastercard is accepted.
In GPA’s assessments, 60% of their customers say they visit Assaí stores for economic reasons as they have been affected by the crisis. Yet, 98% also say they would consider visiting these stores still, even if their situation improves, which highlights a significant satisfaction level.