Listed retailer Pick n Pay has announced a 27% rise in its online food delivery business in announcing results for the 52 weeks ended 2 March, 2014.<\/p>\n
“We have grown our online food delivery business by 27% over the year. We now serve more than 2,000 customers per week, and have extended the service during the year within the Western Cape, KwaZulu-Natal and the Free State,”\u00a0Pick n Pay said.<\/p>\n
This trend supports a recent study published by MasterCard,\u00a0in conjunction with World Wide Worx, which found that South African shoppers are increasingly turning towards the internet to buy their groceries.<\/p>\n
The report noted that consumers purchasing groceries (38%) online increased by 7% over the past year with the number of visits to these sites averaging at two per week.<\/p>\n
\u201cThe products that consumers are buying suggest that online shopping is becoming increasingly mainstream, which also bodes well for local retailers,\u201d said Arthur Goldstuck, MD of World Wide Worx.<\/p>\n
\u201cNo longer is online shopping confined to books and DVDs, plane tickets and apps.\u201d<\/p>\n
Pick n Pay said that group turnover increased by 7.7% to R63.1 billion, with a trading profit, up 34% to R1 billion.<\/p>\n
The shopping group reported a diluted headline earnings per share of 67.13 cents, from 53.70 cents before with a total annual dividend per share of 44.30 cents.<\/p>\n
Pick n Pay noted a marginal decline in “other trading income” due mainly to reduced commissions as customers move away from purchasing airtime at the till to other digital platforms.<\/p>\n
The retailer announced that it is strengthening its partnership with mobile operator, MTN to bring new financial services, including low-cost banking solutions.<\/p>\n
In 2010, MTN and Pick n Pay launched Mobile Money \u2013 a money transfer system which offers customers a simple way to transfer money securely, and to buy goods in Pick n Pay and Boxer stores without needing cash or a debit card.<\/p>\n
Since 2010, almost 2 million customers have used Mobile Money.<\/p>\n
As part of the partnership, Pick n Pay and at MTN will introduce a new sim card enabling customers to earn free airtime and data when they shop at Pick n Pay and Boxer stores using their Mobile Money account.<\/p>\n
They will also be able to convert smart shopper points to MTN airtime or data at a discount.<\/p>\n
The new Mobile Money account, to be launched by MTN and Pick n Pay in the coming weeks, will offer customers:<\/p>\n
Pick n Pay said it now has 1,076 stores, comprising 643 company-owned stores and
\n433 franchise stores, across multiple retail formats and six southern African countries.<\/p>\n
In addition, 52 stores, three of which trade under the Pick n Pay brand, are operated in Zimbabwe by an associate, TM Supermarkets.<\/p>\n
Woolworths targets more online shoppers<\/strong><\/a><\/p>\n More South Africans are buying groceries online<\/strong><\/a><\/p>\n