As Discovery Vitality realigns its health food partner strategy, its decade-long relationship with retailer Pick n Pay will officially come to an end on August 31. Peter Takaendesa, the head of equities at Mergence Investment Managers, said the move made sense for Vitality as it is quite likely that most of Vitality’s mid-high-income members are already doing their shopping at Woolworths and Checkers in addition to Pick n Pay and Spar. Vitality is not as important for food shopping as it is for gym membership; more so now, as there are many other loyalty schemes in the retail market, including those from banks and retailers themselves. Furthermore, the investment case for Pick n Pay now is likely more about its Boxer business.
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Absa CEO Arrie Rautenbach steps down as the group’s valuation continues to lag that of its peers
Commenting on Absa’s results and the surprise announcement of CEO Arrie Rautenbach stepping down, Mergence Senior Analyst Radebe Sipamla said