Retail group Pick n Pay has partnered with Takealot Group to expand its on-demand delivery service capabilities.
Through the partnership, Pick n Pay will have a dedicated on-demand delivery service available on Takealot’s Mr D delivery app, integrating the retailer’s Smart Shopper rewards programme.
The two parties intend to launch the service on a trial basis in the Cape Town area in August 2022 and roll it out rapidly across the country. The service will be available nationwide by the end of 2023.
How the service will work:
- Shoppers will have access to items and products available at their local Pick n Pay stores.
- Orders will be picked in-store by Pick n Pay staff.
- The orders will be delivered by Takealot’s delivery fleet.
- Shoppers will be able to earn Smart Shopper points through the purchases.
While Pick n Pay said it has seen strong sales growth through its own on-demand service, Asap, there is room to capture more of the market. The Mr D service reaches 2.5 million active customers in Souht Africa, it said.
The retail group noted that online grocery sales in South Africa are still in the early stages of growth, but it is expected to expand rapidly over the next few years.
Through the partnership with Takelot, the group expects to increase online revenue by 700% by FY 2026. The group’s on-demand grocery offer as Pick n Pay Asap delivered year-on-year growth of over 300% since August 2021.
“Food and grocery retail is changing very rapidly. Customers are increasingly demanding the convenience of online grocery. This will be a key determinant of future market share,” Pick n Pay said.
The Pick n Pay Smart Shopper loyalty program will be embedded in the Mr D app so that customers will be able to earn points when buying Pick n Pay groceries on the Mr D app.
Pick n Pay CEO Pieter Boone said: “Alongside other initiatives we are announcing today, this is a new era for Pick n Pay and for its customers. There is huge potential for omnichannel retail in this country. Through this agreement with Takealot, we intend to regain market leadership in online grocery, and to do so in a sustainable and profitable way. We plan to increase our online revenue eight-fold by FY26.”
Takealot’s executive chairman, Kim Reid, said: “We are hugely excited to be partnering with the brand and the people at Pick n Pay, who share our values at the Takealot Group. Mr D’s 2.5 million customers will be delighted to see a Pick n Pay grocery offer on the platform.
“The combination of Pick n Pay’s reach, quality, and pricing together with Takealot Group’s leading technology and scalable delivery network is a recipe for success. Scalability will be a huge advantage. Takealot Group, at peak, currently delivers over 5 million packages per month, with the ability and ambition to serve many more customers as demand for this offer grows.”