Rewe and Penny, two major players in the German grocery market, are making headlines as they prepare to leave the Payback partnership by December 29, 2024. This strategic decision is set to reshape how millions of consumers interact with loyalty programs, as both supermarket chains move to establish their own customer reward systems.
For approximately 31 million Payback users across Germany, the end of the year marks a significant shift. Customers at Rewe and Penny will no longer accrue Payback points after the specified date, with some locations even dismantling Payback terminals as early as December 28. Rumors surrounding this change have fueled strong reactions from loyal consumers, as many have taken to social media to express their dissatisfaction.
According to Focus, customers are advised to take advantage of their remaining points swiftly, as the major supermarkets transition to their own loyalty programs. Rewe and Penny plan to launch these new systems via their respective apps, effectively moving away from Payback. "Ab dem 29. Dezember können Supermarkt-Kette Rewe und der Discounter Penny keine Payback-Punkte mehr sammeln," noted Focus.
One of the motivations behind this transition is the substantial cost associated with the Payback program. Reports indicate Regie paid as much as €150 million annually for participation. The new strategy aims to alleviate these costs by creating internal loyalty measures. Consumers can expect to earn bonus amounts of €0.10, €0.20, or even more on select purchases under the new program. For those who frequently shop, this could mean appealing discounts on future transactions.
With new collaborations set to expand, the Edeka Group alongside Netto will join Payback starting 2025, providing consumers with additional opportunities to use their points effectively. Meanwhile, Payback remains committed to allowing current points to be redeemed for three years, addressing consumer concerns about lost rewards.
Industry experts have weighed in on this development. Handels expert Kortum suggests the change could produce both opportunities and risks for Rewe, stating, "Ob viele Kunden abwandern, bleibt abzuwarten." Consumer behavior may shift, causing customers to explore other stores where they perceive greater value, particularly with the impending rise of new loyalty offerings at competitors like Edeka and Netto.
Data privacy and protection have also stirred debates among consumers. Criticism surrounding loyalty programs highlights how they can often lead people to spend more without significant returns. Christine Steffen from Verbraucherzentrale NRW expressed concern, commenting on how well-intentioned savings strategies can ironically result in higher overall spending. "Den Datenschutzbestimmungen gründlich zu lesen," recommends consumer protection advocate Simone Bueb, emphasizing the importance of awareness when engaging with these reward schemes.
For consumers accustomed to the seamless simplicity of Payback, the upcoming changes may feel abrupt. With the requirement to activate and utilize new app features to gain rewards, questions have emerged about the actual savings consumers can expect. Sven Reuter from Smhaggle points out the meager savings often seen with loyalty programs, noting, "Die Ersparnis liege im Schnitt bei nur einem Prozent." Such modest returns may lead customers to question their past loyalty as they adapt to the latest offerings.
Despite the skepticism, both Rewe and Penny are optimistic about refocusing their loyalty strategies. The goal appears to be fostering familiarity among their customer base by promoting dedicated features within their own apps aimed at engagement and savings. Shoppers will have to adapt—transitioning from collecting points physically to leveraging their smartphones at checkout.
Consequently, this major departure from the Payback model may pave the way for enhanced consumer personalization and engagement as both chains seek to make their respective programs tailor-made for user preferences, enhancing customer retention.
On social media, frustration among customers is palpable, sparking discussions over potential boycotts. Unhappy patrons argue they may redirect their shopping to competitors who continue to support existing reward systems. A Rewe market leader has defended the decision on social platforms, emphasizing the costs incurred by the previous system and promising clarity about the new program soon.
The adjustment period is already upon us, with changes set to impact millions of grocery shoppers across Germany. While the transition marks the end of Payback for the time being, it also invites questions about the effectiveness and design of loyalty programs moving forward. Will they retain their existing customer base, or will shoppers flee to competitors? Only time will tell as the new structure takes effect—marking both an end and, perhaps, a new beginning for grocery loyalty schemes.
