Grocery delivery race heats up, Pick n Pay partners with Takealot (Mr D)

The Money Show talks to CEO Pieter Boone about Pick n Pay's strong results and 'bold' new strategic plan.

Image supplied by Pick n Pay

Customers are increasingly demanding the convenience of online grocery shopping, and Pick n Pay says it has listened.

The retailer's announced an agreement with Takealot to enable customers to buy Pick n Pay food, groceries, and liquor on a new platform on the Mr D app.

Image supplied by Pick n Pay

When shoppers open the app, they will be offered the choice either to “buy groceries” or “buy food from restaurants”.

Grocery orders will be packed from the closest Pick n Pay store, then collected for delivery by a member of the Takealot fleet.

Smart Shopper card holders will be able to earn points when buying their groceries on the Mr D app.

Pick n Pay intends to regain market leadership in online grocery, increasing its online revenue eight-fold by FY26 says CEO Pieter Boone.

Pick n Pay delivered strong results on Tuesday and presented a new strategic plan for the Group.

This includes a differentiated focus on higher- and lower income customer segments.

Bruce Whitfield interviews Boone on The Money Show.

If you look at the formal grocery food retail market in South Africa it will grow from a little over R600 billion towards over R800 billion in the next five years. We would like to take part of that growth. That you can only achieve with having a really clearly defined customer value proposition...

Pieter Boone, CEO - Pick n Pay

... be it towards the lower LSMs of this market... with further accelerating the winning discount model called Boxer, and subsequently a redefined customer offering we would have in place in relation to servicing what I call the middle and the more affluent part of the market.

Pieter Boone, CEO - Pick n Pay

Whitfield asks about the reasoning behind outsourcing delivery for Pick n Pay's expanded online grocery business.

RELATED: Pick n Pay buys 'Bottles' delivery app after taking R2.8b knock in sales

Boone refers to the triple-digit growth it is achieving with the Bottles delivery platform, saying the online market will continue to accelerate.

We bring expertise with our store network and fantastic ranges of goods... Within this [Takealot] platform we have 2.5 million customers that are active on that platform... It is the best of both worlds that we tie together...

Pieter Boone, CEO - Pick n Pay

The service will be launched on a trial basis in the Cape Town area in August for rapid rollout across the country.

For more on Pick n Pay's 'new strategic plan', listen to the interview with Boone below:

This article first appeared on CapeTalk : Grocery delivery race heats up, Pick n Pay partners with Takealot (Mr D)