Pick n Pay has announced a commercial agreement with Takealot that will see its food, groceries, and liquor products added to the Mr D app.
A dedicated section for Pick n Pay will be added to the Mr D app in August 2022 and will be available nationwide by the company’s financial year-end.
Pick n Pay said Mr D boasts 2.5 million active customers.
The announcement comes after Pick n Pay revealed that its on-demand grocery service, Pick n Pay asap!, grew 300% since August 2021.
Pick n Pay CEO Pieter Boone explained that shoppers will have access to products offered by their local stores and will earn Smart Shopper points for their purchases.
Dedicated staff will pick items in-store 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 had tremendous 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 financial year ended 27 February 2022.
The Pick n Pay Group reported what it labelled as a “resilient performance” in a year marred by civil unrest and Covid restrictions on the sale of liquor.
“Group turnover increased by 5.2%, despite an estimated R2.7 billion in lost sales arising from the civil unrest in July 2021 (R1.8 billion) and the trading restrictions on liquor mainly in the first half of the year (R0.9 billion),” the company stated.
The retailer plans to split its stores into two types to better distinguish between its offerings to compete across three different consumer segments.
The existing brand will compete more directly with Checkers and Woolworths in the more affluent market.
A new mid-way brand under the codename “Project Red” will cover consumers between the high-end and low-income market typically served by the group’s Boxer stores.
The Project Red stores will focus on low prices and great quality, Pick n Pay said.
These stores will offer a range of roughly 8,000 stock-keeping units (SKUs), emphasising essentials, a robust fresh offer, and excellent service.
Pick n Pay stores promise to boast a depth of range and focus on quality, innovation and freshness. These stores will cover a range of around 18,000 SKUs.