The on-demand delivery giant crushing its competition in South Africa

Shoprite Checkers’ on-demand delivery service, Sixty60, has expanded significantly since it launched in 2019 and has quickly become the dominant on-demand grocery service in South Africa.

This is shown in the company’s financial reporting. Checkers Sixty60’s sales grew by 47.1% during the second half of 2024, following growth of 63.1% in the year’s first half.

In comparison, the Pick n Pay, which runs the country’s second-most prominent on-demand delivery service, PnP asap!, reported online sales growth of 42.5% during the 45 weeks ended 5 January 2025.

This includes direct sales through its platform and integration with the Mr D platform.

“Online sales growth for the period was 42.5%, driven by the continued growth of Pick n Pay asap! and Pick n Pay Groceries on the Mr D app,” Pick n Pay said.

Shoprite’s latest results also show that Checkers Sixty60 reported record customer retention and advocacy rates despite increased competition in the space.

It also recorded a 1.3-times increase in the average frequency of customers placing orders through the Sixty60 platform.

Shoprite noted that Sixty60 had created nearly 14,200 new employment opportunities since its launch, and that its expanded capacity and dark stores helped fuel its growth.

As of 29 December 2024, the Checkers Sixty60 on-demand delivery service was available out of 601 locations, with the retailer adding 96 new sites in 2024.

In comparison, Pick n Pay’s latest results revealed that its PnP asap! service operates out of around 500 locations nationwide.

According to Shoprite’s strategy and innovation chief, Neil Schreuder, Sixty60’s success lies in its extensive distribution and shop network and its last-mile efficiency.

The service received a significant boost during the Covid-19 pandemic when associated lockdowns limited the movement of people in South Africa, encouraging them to use delivery services.

Schreuder explained that sales volumes skyrocketed with Checkers’ rapid expansion of the Sixty60 service nationwide.

He said that, a decade ago, retailers viewed their extensive real estate and footprint as an “Achilles heel”, with retailers with smaller footprints and centralised distribution centres appearing to have an advantage.

“Checkers has weaponised its store footprint and proximity to customers,” he said.

According to Schreuder, 80% of South Africans live within five kilometres of one of the company’s supermarkets.

Shoprite Checkers also has a well-developed supply chain designed to deliver millions of products to 3,000 stores nationwide daily.

With this foundation, Sixty60’s only aspect to cover is the last five-kilometre delivery to customers’ doors.

“We do the last five kilometres really efficiently. We can do it faster and more affordably than normal online retailers,” said Schreuder.

As a result, its extensive physical footprint, combined with in-store picking, has become one of its weapons.

He said their average delivery time has dropped to 33 minutes, and customers cannot return to slower deliveries.

Expanding to take on Takealot and Amazon

Checkers expanded its Sixty60 catalogue significantly when it added Checkers Hyper products to the platform in October 2024.

In addition to ordering groceries on demand, it enables users to order a wide range of other products, including tech and appliances, from prominent brands.

These include Apple, Dyson, Thule, Smeg, Samsung, and Harmon Kardon.

“Over 10,000 larger general merchandise products are now available for same-day delivery within sixty-minute time slots,” it said at launch.

In January 2025, the retailer told MyBroadband that the new offering had performed well and contributed to a user increase of around 10%.

“It has been very well received and contributed to an increase of nearly 10% in new customers using the platform,” it said.

Regarding the most popular Hyper products on Sixty60, it said customers frequently ordered baby essentials such as car seats and strollers, gardening products, large toys, camping and outdoor equipment, and bulk grocery staples like long-life UHT milk six-packs.

It said the service proved particularly valuable over the festive season in 2024.

“Delivery volumes peaked on Christmas Eve, demonstrating both the popularity of the service and its ability to assist with last-minute gifting and hosting needs,” said Shoprite.

It also highlighted the speed of its Checkers Hyper Sixty60 offering, noting that a customer ordered two PlayStation 5 consoles at 14:56, and they were delivered a little over two hours later.