Pick n Pay, a JSE-listed grocery retailer announced a partnership with the Takealot Group‘s Mr. Delivery service on Tuesday, which would expand its on-demand food presence by allowing customers to place online grocery orders delivered in 60 minutes.
It made the deal public during a presentation about its reworked strategy plan, which it did after releasing its latest full-year results. Pick n Pay reports an increase in FY earnings and raises dividends.
Pick n’Pay claims The new service will be available in Cape Town in August 2022 and then throughout the country by the end of the fiscal year in 2023.
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“Pick n Pay has completed a commercial services agreement with the Takealot Group, which will result in the launch of a dedicated Pick n Pay on-demand food, grocery, and liquor offer on the Mr. D app, which presently has over 2.5 million active consumers,” says the store. Smart Shopper, the group’s loyalty programme, will also be linked.
More on The Agreement Between Pick n Pay and Takealot Group
“According to the agreement, when a consumer opens the Mr. D app, he or she would be given the option of ‘buying groceries’ or ‘buying meals from restaurants.’ Customers will access a dedicated Pick n Pay food and grocery experience by clicking on ‘purchase groceries’… Select n Pay will pick up and pack the order at the nearest Pick n Pay store once placed and paid for. Pick & Pay says, “An employee of the Takealot delivery fleet will then pick it up and bring it to the customer.”
An Attempt to Re-establish Market Dominance
Pick & Pay has fallen behind its biggest competitor, Shoprite, by a long way. Shoprite’s Checkers Sixty60 app has taken over the on-demand grocery business.
They currently provide a fantastic on-demand grocery service via asap! Customers will now be able to benefit from a more enormous, better, faster, and more exciting offer thanks to Pick n Pay’s collaboration with the Takealot Group, “says CEO Pieter Boone.
“It will be the best of Pick n Pay on Mr. D, with Takealot Group’s industry-leading platforms and service standards.”
According to Boone, the store hopes to reestablish market dominance in online grocery services with this arrangement. He also stated his intention to increase Pick & Pay’s online sales by eight times by 2026.
“We are thrilled to be collaborating with the brand and the people at Pick n Pay, who share our Takealot Group values.” Takealot executive chairman Kim Reid said, “Mr. D’s 2.5 million customers will be happy to see a Pick n’ Pay supermarket offer on the site.”
“The combination of Pick n Pay’s reach, quality, and affordability with Takealot Group’s leading technology and scalable delivery network is a winning combination.”
“Scalability will be a significant benefit.” At its peak, Takealot Group distributes over 5 million shipments every month, with the potential and ambition to serve many more consumers as demand for this offer grows, “he says.