Pick n Pay and Takealot have announced a partnership that will allow South Africans to order groceries from the retailer via the Mr D app.
In a joint statement on Tuesday (17 May), the two companies said the new service will launch in Cape Town on a trial basis in August 2022. A full nationwide rollout will follow by the end of 2023.
Takealot and Pick n Pay partnership
“Pick n Pay will bring its tremendous expertise in running fresh food and grocery, its nationwide store network, and its leading Smart Shopper loyalty programme. The Takealot Group will bring its proven ability to satisfy online, its technical expertise, and its unrivalled delivery network,” the companies said.
Here’s how the service will work:
- On the Mr D app, a customer will see a choice to “buy groceries” or “buy food from restaurants.”
- When a customer clicks on “buy groceries,” the app will bring up a dedicated Pick n Pay “food and grocery experience.” They will then be able to browse and select their items before making a payment.
- Pick n Pay staff will then pack the order in-store.
- A member of Takealot’s delivery fleet will collect the order and deliver it to the customer.
Customers on the Pick n Pay Smart Shopper loyalty programme will still earn points when they use the app.
“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,” Pick n Pay CEO Pieter Boone said.
“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 added, “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.”
Through its partnership with Takealot, the retailer anticipates a revenue boost of up to 700 percent by the 2026 financial year. Its in-house delivery platform, Pick n Pay asap!, also recorded year-on-year growth of over 300 percent since August last year.
“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,” the retailer said.
The COVID-19 pandemic over the past two years has compelled many South Africans to turn to online shopping and delivery platforms.
Pick n Pay asap! is now available in 392 stores countrywide. Rival app Checkers Sixty60 has also recorded significant growth, with research showing it made up three quarters of all on-demand grocery delivery spend in the last quarter of 2021.