More PayPoint customers leave stores without a secondary purchase than buyers of cigarettes, newspapers and scratchcards, according to new figures that challenge claims the real benefit of the service comes from additional footfall.
The analysis, conducted by data analyst EDFM for RN, shows 41% of PayPoint customers did not buy other products – the highest out of 12 core categories, and three times higher than a number of confectionery lines.
The average basket spend for customers who did make additional purchases was £5.75, £1.91 lower than the figure quoted by the payment services provider. The average additional basket ranged from £4.79 to £9.11 across the 12 categories, with PayPoint’s the fifth lowest.
Mo Razzaq, of Mo’s Premier in Glasgow, said: “We have been saying from the very start that the claims from PayPoint are pie in the sky. It might be the case for multiples, but not for independents.”
Kay Patel, of Global Food & Wine, Stratford, said: “PayPoint’s claim is ridiculous. I knew it was wrong from the beginning because people who use it are from low income households. I think the figures could be even lower.”
The analysis, which forms part of RN’s data project into how footfall drivers benefit retailers, used the EPoS data of 90 c-stores over a seven-day period.
PayPoint’s claim is ridiculous. I knew it was wrong from the beginning because people who use it are from low income households. I think the figures could be even lower
Steve O’Neill, PayPoint’s group marketing director, said: “The data is hard to compare with the Him! study and other EPoS data that we use to validate basket spend where we can clearly identify store format, size, range, fascia and location.”
He added: “Interestingly, this data suggests that there are a higher percentage of PayPoint transactions with a basket attached than we see in the Him! figures (59% according to this data vs 47% attachment rate in the Him! study).”
See Retail Newsagent’s 17 July issue for a full footfall analysis. Click here for a preview.