Pick n Pay ups on-demand grocery delivery ante with Takealot deal

JSE-listed grocery retail giant Pick n Pay on Tuesday revealed a partnership with the Takealot Group’s Mr Delivery service which will see it ramping up its on-demand grocery presence, allowing customers to make online grocery orders that will be delivered in 60 minutes.

It announced the deal during a presentation on its revamped strategy plan, following the release of its latest full year results.

Read: Pick n Pay reports a rise in FY profit, ups dividend

Pick n Pay says the rollout of this new service will begin in August 2022 in Cape Town but will be subsequently rolled out across the county by the end of the 2023 financial year.

“Pick n Pay has concluded a commercial services agreement with the Takealot Group which will see the launch of a dedicated Pick n Pay on-demand food, grocery, and liquor offer on the Mr D app, which currently enjoys over 2.5 million active customers,” the retailer adds.

The group’s loyalty programme Smart Shopper will also be linked, meaning customers can continue to enjoy customer rewards through the partnership.

Restoring dominance

So far, Pick n Pay has been trailing far behind its largest competitor Shoprite, which through its Checkers Sixty60 app offering has been dominating the on-demand grocery space.

“This is a great day for customers. Pick n Pay already offers an excellent on-demand grocery service through asap! By working with the Takealot Group, customers will now be able to benefit from a bigger, better, faster, and more exciting offer,” says Pick n Pay CEO Pieter Boone.

“It will be the best of Pick n Pay now on Mr D and benefiting from Takealot Group’s industry-leading platforms and service standards.”

Boone says that through this partnership, the retailer looks to regain market dominance in online grocery. He also announced ambitions to grow Pick n Pay’s online sales by eight times, by the end of the 2026 financial year.

Read: How Checkers Sixty60 dominates the on-demand grocery market

“We are hugely excited to be partnering with the brand and the people at Pick n Pay, who share our values at the Takealot Group.  Mr D’s 2.5 million customers will be delighted to see a Pick n Pay grocery offer on the platform,” Takealot executive chairman Kim Reid says.

“The combination of Pick n Pay’s reach, quality, and pricing together with Takealot Group’s leading technology and scalable delivery network is a recipe for success.”

“Scalability will be a huge advantage. Takealot Group, at peak, currently delivers over 5 million packages per month, with the ability and ambition to serve many more customers as demand for this offer grows,” he adds.