SAO PAULO, Oct 30 (Reuters) – Brazilian food retailer GPA has signed an agreement with loyalty program firm Livelo that is set to significantly boost the company’s digital business, executives told Reuters on Monday.
Under the deal, clients who subscribe to GPA’s Clube Extra or Pao de Acucar Mais apps, as well as Livelo, a loyalty program that allows discounted purchases on everything from electronics to hotels, will be able to apply Livelo points directly to GPA loyalty platforms, starting in November.
“We believe that this could increase the number of redemptions by more than 20 percent,” Livelo Chief Executive Alexandre Rappaport told Reuters.
The deal comes as Brazil’s two largest food retailers, GPA and archrival Carrefour Brasil, sharpen their focus on e-commerce and digital-first initiatives.
The program will start with GPA’s Extra and the upscale Pao de Acucar banners, though the parties have not ruled out expanding the initiative down the road, GPA’s head of strategic development, Eduardo Leonidas, said.
GPA, a unit of France’s Casino Guichard Perrachon SA , has 17 million clients participating on its Clube Extra and Pao de Acucar apps, while Livelo – part of a joint venture between Banco Bradesco SA and Banco do Brasil SA – has 19 million clients.
Reporting by Gabriela Mello Writing by Gram Slattery Editing by Leslie Adler