Pick n Pay online sales boom

Pick n Pay reported more than 100% on-demand online sales growth for the 2023 financial year, spurred by the retailer’s partnership with Takelot’s Mr D.

In its financial results for the year ended 26 February 2023, Pick n Pay said online sales growth was accelerated by the launch of Pick n Pay’s food and grocery offer on the Mr D app. 

The collaboration was launched in October 2022 from a limited number of stores but has since become a nationwide offer.

It allows both parties to use Pick n Pay’s extensive store network and products and Mr D’s 2.5 million active customer base and 15,000-strong scooter delivery fleet.

Pick n Pay also offers an online shopping option through its own app, Pick n Pay ASAP!.

Through these two channels, the retailer achieved total online sales growth of 72% in the reported period.

Stiff competition

Pick n Pay joins numerous other grocery stores in South Africa that have expanded into online offerings and seen exceptional growth.

Statista reported that revenue in South Africa’s online food delivery market is projected to reach R34 billion in 2023. The grocery delivery segment is expected to grow by 16% in 2024.

Shoprite’s Checkers Sixty60 is the largest grocery app in the country. The company’s latest annual results report that the service has been rolled out to 394 stores since it launched in 2019.

Sixty60 also recorded a 150% increase in annual sales and is currently the top South African grocery app with 2.4 million downloads.

Retailer Woolworths offers its products through the service Woolies Dash, which has been integrated with its Woolworths App. 

Earlier this year, the company reported a 150% increase in Dash sales over the past year.