A $15,000 grocery shopping trip paid for with a digital gift card is becoming an increasingly familiar sight at Progressive Grocers. The supermarket chain has become the first merchant on the GiftMe platform to surpass $500 million in gross merchandise value — the total value of transactions processed through the platform.

The milestone was driven largely by corporate gift card programmes and purchases from the Jamaican Diaspora.

Nardia Young (left), financial controller at Progressive Grocers, accepts the company’s top sales award after the supermarket chain became the first merchant on the GiftMe platform to surpass $500 million in gross merchandise value. (Photo: Gladstone Taylor)

“A lot of our partners — such as Ding where a lot of our gift cards from the Diaspora are sent back to Jamaica — are supermarket vouchers, and so those individuals that receive those vouchers would only be able to redeem them at supermarkets. And I believe Progressive is a choice,” GiftMe CEO and Founder Rushio Billings told the Jamaica Observer.

Billings said corporate purchases account for roughly 70 per cent of spending across the GiftMe platform, followed by Diaspora purchases at about 20 per cent, and local consumers at about 10 per cent. He credited Progressive’s extensive islandwide footprint and the essential nature of grocery shopping for the retailer’s performance on the platform. For Progressive, its partnership with GiftMe has helped expand customer engagement through the platform’s rewards programme.

Guests display GiftMe-branded gift bags during the company’s fifth anniversary celebration.Gladstone Taylor

“Customers appreciate the opportunity to earn and redeem rewards. During the early stages we frequently received enquiries about whether we accepted GiftMe. Once it became widely known that we were a GiftMe merchant we noticed an increase in customers using the rewards programme,” the supermarket said.

According to Progressive Grocers, the average GiftMe transaction is $15,000 — three times the platform-wide average purchase of about $5,000.

Awards presented to merchant partners during GiftMe’s fifth anniversary celebration recognised businesses that reached key gross merchandise value milestones through the platform.Gladstone Taylor

Across its 22 locations, Progressive records roughly $3.5 million in GiftMe transactions each month. Customers also typically redeem the full value of their gift cards in a single shopping trip, with redemption activity remaining fairly consistent throughout the year, apart from an uptick during the Christmas season. Progressive’s recognition came during GiftMe’s fifth anniversary celebrations during which the company also recognised several other merchant partners for reaching sales milestones. MegaMart, Grab N Go and Starbucks received awards after surpassing $50 million in gross merchandise value. Fresh Approach, Fontana, Island Grill, Hi-Lo Food Stores and FESCO exceeded $100 million in sales.

“It’s quite impressive given that it’s a new thing that has been introduced to the country, a digital gift card at that. And from a consumer’s perspective, I believe that it’s pretty clear where consumers spend most of their disposable income, or any income at all that they receive,” said Billings.

BILLINGS..it’s quite impressive given that it’s a new thing that has been introduced to the country, a digital gift card at that. And from a consumer’s perspective, I believe that it’s pretty clear where consumers spend most of their disposable income, or any income at all that they receive.

Riding the momentum from its rewards ecosystem, GiftMe has also expanded into travel bookings with a feature dubbed Taking Flight, allowing users to redeem reward points earned through everyday transactions towards flights and hotel stays. The feature, which launched just over a week ago, is designed to encourage more consumers to use the app for routine spending by offering travel rewards.

“We think our system is capable of drawing more consumers who want to use our app for everyday spending, and they want meaningful things to do with the rewards they earn. I believe travel — not just flights, but flights and stays — is one of the most important things people aspire to experience,” Billings told the Business Observer.