A first-of-its-kind initiative by the north’s third largest grocer could have the potential to pump tens of thousands of pounds of “free” money into cash-strapped primary schools across the region.
Asda, which has 16 stores in Northern Ireland, has launched a unique initiative, fronted by fitness guru Joe Wicks, which will cash go straight into school coffers every time a customer uses the retailer’s rewards loyalty programme.
And Asda’s chief customer officer David Hills, speaking to the Irish News, said: “While we envisage spending to £7.5 million across the UK on this programme, including potentially tens of thousands in Northern Ireland, there is no ceiling on the amount we could give away here.”
The Cashpot for Schools campaign will see Asda donate 0.5% of a Rewards App customer’s total basket spend to a primary school of their choice.
The supermarket is kicking off each school fund with £50 and offering to top up with an extra £1 for every customer that selects that particular school.
And the offer - which runs until the end of November - is in addition to customers’ existing Cashpot contributions, meaning a win for both customers and schools.
“We believe this is a first in the loyalty market,” says Hills.
The Asda pledge comes as a study showed that 80% of schools in Northern Ireland are now reliant on family, friends and Parent Teacher Associations for funding core costs.
According to the data, a lack of schools’ funding is seeing parents having to bridge the financial gap, with 45% being asked by their child’s school to donate money, and 36% being asked to donate multiple times a year.
Despite more than a quarter of parents (39%) feeling financially unable to contribute extra funds, some parents are still having to spend up to £125 a year to support their children’s schools.
Some 73% of Northern Ireland teachers say that a lack of funding has impacted learning and student experience at their school, with the most significantly underfunded needs being school trips (67%), books and learning materials (60%), and sports equipment (60%).
“Customers will simply need to select their primary school of choice within the Asda Rewards app and make sure they scan every time they shop - then we will automatically donate 0.5% of the value of their basket to their chosen school,” Mr Hills added.
“Asda will kickstart each school’s Cashpot with £50 once they register for the initiative, and will add an additional £1 to the school pot for every customer who signs up. We are anticipating around £500 to be raised for each school taking part.”
Asda, which serves around 16 million customers each week from more than 1,200 UK locations and online, returned to a pre-tax profit in its last financial year, despite losing market share to its grocery rivals over the period, as it vowed to build a “bigger and better” business.
In the year to the end of December 2023, it showed a pre-tax profit of £180m, up from a £432m loss in 2022.
Adjusted EBITDA jumped 24% after rent to £1.078 billion driven by 5.4% like-for-like sales growth, which it said was driven by “its continued focus on value for customers, and the impact of strategic acquisitions in the convenience sector”.
Online now accounts for 18% of Asda’s total grocery sales, and in 2023 it said it delivered a record 39 million orders with a sales value of £3.2bn, giving it a 20.8% share of the online grocery market.
Fronting the campaign for Asda is fitness guru and dad of four Joe Wicks, who said: “I know first-hand from the work I’ve done in schools just how much of a difference Cashpot for Schools is going to make to kids.
“I feel incredibly proud to be part of such an important initiative with Asda, which is as committed to supporting families as I am. From sports facilities to nutrition, shoppers’ donations will have a huge impact on primary schools around the country.”
Mr Hills added: “In the past, supermarkets have given away computers or sports equipment.
“But Cashpot for Schools is a pounds, not points, proposition. We’re offering hard cash to schools, and they can spend that money on absolutely anything they want.
“We see this unique initiative as combining the great value shopping shoppers know and love us for, with a win for their local primary school too.”
Brothers Zuber and Mohsin Issa bought 90% of Asda from Walmart in 2020 in a £6.8 billion deal with the backing of private equity firm TDR Capital.
In June Zuber Issa has sold his stake back to TDR Capital, meaning its share in the supermarket group is now 67.5%, while 22.5% is still owned by Zuber’s brother Mohsin. Walmart retains its 10% stake.
