Business20.02.2022

Spar launching online delivery service — and it will face stiff competition

Spar South Africa has announced that it will be launching an online shopping and delivery platform in selected Johannesburg stores towards the end of March 2022.

Dubbed Spar2U, Spar Group Limited has said that the new platform “will enhance the Group’s ability to assist retailers in driving improved consumer service and engagement going forward”.

Spar is South Africa’s last listed grocery retailer to offer a delivery service, with Woolworths’, Checkers’, and Pick n Pay’s platforms being available for some time now.

After launching a pilot of the service at the end of 2021, Spar2U will exit its trial phase at a group of stores in Johannesburg’s northern suburbs, the retail chain stated.

“Although many of our retailers have been quick to respond to consumers’ needs for online shopping, we have recognised the need for a sophisticated offering tailored for our unique business model,” Spar’s CEO Brett Botten told shareholders at the time.

“We believe that the Spar business model requires an online shopping solution that serves our Spar consumers but one which also will add value to our independent retail partners and the communities in which they operate.”

Checkers was the first to launch its rapid on-demand delivery service, Sixty60, in 2019. It aims to deliver within 60 minutes of an order being placed.

Checkers said that the prices for products on the Sixty60 app offer “the same value for money for which Checkers is renowned”.

“Sixty60 will offer unrivalled convenience because it does all the hard work for you,” said Shoprite Checkers chief on innovation and strategy Neil Schreuder.

Pick n Pay announced its intentions to launch an online grocery retail service in October 2020 by acquiring on-demand delivery platform Bottles.

“Our aim is to have a business which customers can access anytime, anywhere and from any place,” said Pick n Pay CEO Richard Brasher.

Bottles was rebranded Pick n Pay asap! in August 2021.

Pick n Pay’s Bottles launch was followed closely by Woolworths, which announced its plans to launch a same-day delivery service — Woolies Dash — in November 2020.

The Covid-19 pandemic and subsequent lockdowns meant that South African consumers, and businesses, had to adapt to a reality where people couldn’t leave their homes.

As a result, ecommerce boomed in the country, adding to the success of these online grocery delivery services.

In August 2021, MyBroadband conducted a test to compare Checkers Sixty60 and Pick n Pay’s asap!. The results were impressive.

While Checkers’ performance was marginally better than Pick n Pay’s, both services made their deliveries within 40 minutes, and the cost of the goods ordered only differed by R1.00.


Now read: Software developer salaries in South Africa in 2022

Show comments

Latest news

More news

Trending news

Sign up to the MyBroadband newsletter