Since its inception in 2019, Shoprite’s Checkers Sixty60 on-demand grocery delivery service has demonstrated remarkable growth, contributing an estimated R10 billion annually to the company’s revenue.
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Shoprite, renowned for its diverse portfolio including Checkers, House & Home, OK, Uniq, and Computicket, recently unveiled its financial results for the 26 weeks ending on December 31, 2023.
The largest retailer in South Africa showcased robust financial performance, with sales surging by 13.9% to reach R121.1 billion. The stellar growth was predominantly fueled by the core South African supermarket segment, witnessing a substantial 14.6% increase in sales to R97.5 billion.
Specifically, Checkers and Checkers Hyper experienced a noteworthy sales surge of 13.7%, amounting to R38.5 billion during the six-month period. This surge was notably boosted by the remarkable growth of Checkers Sixty60, which saw a staggering 63.1% increase in sales over the same period.
Although Shoprite has remained discreet regarding the financial specifics of Checkers Sixty60, CEO Pieter Engelbrecht affirmed its profitability during the interim results presentation. Despite declining to disclose revenue or profit figures, Engelbrecht emphasized the significant profitability of Checkers Sixty60, asserting its position as the leading grocery app in South Africa with over 4.5 million downloads.
With Checkers Sixty60 available at 505 locations, generating employment for 9,903 individuals, and witnessing a sales increase exceeding tenfold since the first half of 2021, its financial contribution to Shoprite’s topline remains a subject of interest.
Daily Investor, seeking to estimate Checkers Sixty60’s revenue contribution, analyzed Shoprite’s financial data. Based on Shoprite’s consolidated merchandise sales for the 2023 financial year, with Checkers Sixty60 accounting for less than 5% of total sales, the service is estimated to generate at most R10.75 billion annually.
Further analysis of Pingo, the logistics company associated with Checkers Sixty60, revealed revenue of R994 million in 2023. Considering the delivery charge of R35 and the average number of deliveries, the estimated revenue surpasses R10 billion.
This estimation is further validated by insights gathered from Sixty60 drivers, suggesting that Pingo likely generates around R10 billion per year, excluding delivery fees.
