Pick n Pay has announced a commercial agreement with Takealot which will see its food, grocery and alcohol products added to the Mr D.
A dedicated Pick n Pay section will be added to the Mr D app in August 2022 and will be available nationwide by the end of the company’s fiscal year.
Pick n Pay said Mr D has 2.5 million active customers.
The announcement comes after Pick n Pay revealed that its on-demand grocery service, Pick n Pay asap!, has grown 300% since August 2021.
Pick n Pay CEO Pieter Boone explained that shoppers will have access to products offered by their local stores and earn Smart Shopper points for their purchases.
Dedicated staff will select in-store items after customers place their orders, and Takealot’s fleet will deliver them.
The new feature could up the ante in the on-demand grocery delivery space in South Africa, where rival Checkers has seen huge success with its Sixty60 app.
The partnership was unveiled as part of a new strategic plan during Pick n Pay’s presentation of its annual results for the year ended February 27, 2022.
The Pick n Pay group reported what it called a “resilient performance” in a year marked by civil unrest and Covid restrictions on the sale of alcohol.
“Group turnover increased by 5.2%, despite an estimated loss of sales of R2.7 billion resulting from the July 2021 civil unrest (R1.8 billion) and trade restrictions on the market. mainly in the first half of the year (R0.9 billion). billion),” the company said.
The retailer plans to split its stores into two types to better distinguish its offerings to compete with three different consumer segments.
The existing brand will compete more directly with Checkers and Woolworths in the more affluent market.
A new mid-market brand under the codename “Project Red” will cover consumers between the high-end market and the low-income market typically served by the group’s Boxer stores.
Project Red stores will focus on low prices and high quality, Pick n Pay said.
These stores will offer a range of approximately 8,000 stock keeping units (SKUs), emphasizing the essentials, a robust fresh offering and excellent service.
Pick n Pay stores promise to offer an extensive range and focus on quality, innovation and freshness. These stores will cover a range of approximately 18,000 references.