The German retailer announced their plan to leave the partnership with Payback. It is said to be exploring setting up its own loyalty programme.
GLOAccording to the “Lebensmittelzeitung,” REWE Group has extended its contract with Payback to the end of 2024 but then wants to terminate it. Rewe owns the Penny discount store chain as well. The trade publication had already written about a potential end to Rewe’s repayment mechanism just before Christmas. But at that time, there was discussion about extending the agreement to the end of 2025. Rewe is looking to set up its own customer loyalty program after the end of the cooperation with Payback which will give the retail group much more direct access to customer data and greater options for customizing its offers than before.
Rewe has been cooperating with the Payback in the supermarket business since 2014, and the discounter Penny, which belongs to the Rewe Group, joined it in 2018. The retail group with its millions of customers is one of the most important partners for Payback, emphasized the “Lebensmittel Zeitung” The breakup with Rewe is considered a severe setback for the American Express subsidiary. According to the trade newspaper, Rewe and Penny customers make up 17 million of the 31 million Payback client accounts in Germany. Moreover, the payback mechanism reportedly costs Rewe at least 150 million euros annually.
