A massive war is shaping up in South Africa. Online grocery delivery services are at each other’s throats as the jockey for Mzanzi clients. In less than six months Pick n Pay has nearly doubled its online sales, tapping into the convenience and non-travel Saffas are after. The company published a trading update this week, declaring a 97.3 percent growth in online sales.
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Interestingly, Pick n Pay has stuck to their guns with two separate online delivery options – there is the old Pick n Pay online store, and also their on-demand delivery online shopping service “asap!”. “Progress towards our goal of a step-change increase in online sales continues,” Pick n Pay reported. “The launch of a dedicated Pick n Pay food and grocery offer on the Mr D App is on track.”
It is expected to keep growing, as PnP keeps pushing its new offerings. On 17 May, Pick n Pay and Takealot announced they had concluded an agreement to add the retailer’s food, groceries, and liquor products to the Mr D app.
According to Pick n Pay CEO Pieter Boone, shoppers will have access to products stocked by local stores and would earn Smart Shopper points for purchases. They then have dedicated staff that picks up items in-store after customers place their orders, and Takealot’s fleet will deliver them.
In order to improve customer experience, Pick n Pay earlier this year made “major modifications” to its mobile app and in-store picking interface. This included enhanced ordering, navigation, and checkout.
As the average South African consumer remains squeezed due to increasing fuel prices and immense inflation across the board, online services continue to grow. Consumers are partial to convenience, but the additional delivery fee doesn’t seem exorbitant as all other costs have increased significantly.
