While Pick n Pay faces various challenges, there’s a bright spot in its business, particularly in the online realm, led by its asap! platform.
During the half-year ending on August 27, 2023, the retail group reported a substantial 76.3% year-on-year surge in online sales. This growth has been driven in part by a doubling in the usage of its on-demand platforms, namely asap! and Pick n Pay groceries on Takealot’s Mr D app.
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The company highlighted the ongoing enhancement of its online execution, offering a broader range of products. It emphasized that asap! now boasts 25,000 available products, and the platform includes 500 stores, comprising supermarkets and liquor stores.
Pick n Pay’s focus on improving the customer’s delivery experience has resulted in a notable 36% year-on-year reduction in order preparation time and a 20% improvement in delivery time.
In an effort to stay competitive in the online retail space, Pick n Pay relaunched the asap! app. The new version incorporates artificial intelligence-driven search features, enhancing user convenience and efficiency.
The retail group is also pushing for non-grocery online sales through its Pick n Pay Clothing’s online platform and Pick n Pay Home.
To further enhance customer loyalty and engagement, Pick n Pay recently relaunched its Smart Shopper loyalty program. The changes aim to simplify the program and make it more rewarding for customers. This includes the introduction of a “totally new app,” which will provide seamless offers, better communication, and a more convenient way for customers to collect and redeem points.
Despite the promising online performance, Pick n Pay faced challenges during the reporting period. The group’s turnover reached R54.1 billion, marking a 5.4% year-on-year increase. However, trading profit took a hit, plummeting by 97.5% to just R31.8 million. This decline was partly due to underperformance in the core supermarkets business.
As a result of its operational struggles, the group reported a headline loss per share of 137.24 cents, in contrast to positive earnings of 97.73 cents a year prior. Notably, this loss was impacted by unusual costs associated with a restructuring effort. Consequently, Pick n Pay decided not to pay a dividend in light of its poor performance.
