ShopRite To Extend Its On-Demand Grocery Delivery Service To Its Discount Stores

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Brand Spur
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After announcing a 9.9% increase in half-year earnings, Shoprite Holdings will ratchet up a turf battle for South Africa’s low-income shoppers by extending its on-demand grocery delivery service to its eponymous discount stores.

After entering the rapid commerce industry in 2019 through its upscale Checkers shops, the grocery business is now extending its Sixty60 online delivery to Shoprite consumers, despite facing intense rivalry from rivals Pick n Pay and Woolworths, BrandSpur news brand reports.

According to the firm, Sixty60 will debut at 19 Shoprite locations throughout eight provinces after a successful pilot in the provinces of Gauteng and the Western Cape.

The group CEO, Pieter Engelbrecht, told BrandSpur digital news platform that the deployment will not be as extensive as Checkers Sixty60’s. He stated: “For a couple of months, we had three stores as a pilot to test the water to see if there is demand and the answer is there is a demand.”

To better serve its consumers, Checkers Sixty60 has grown its retail base to 601 locations. The business, which now faces competition from major e-commerce players like Takealot and Amazon, also intends to add over 10,000 general retail products to its updated Checkers Sixty60 app.

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In the 26 weeks ending December 29, 2023, Shoprite, which has over 3,400 stores, including OK Franchise, in ten African nations, posted headline earnings per share from continuing operations of 662.3 cents. Supermarkets South Africa, the retailer’s main business, saw sales growth of 10.4% and like-for-like sales growth of 6.1%, while group sales from continuing operations increased by 9.6% to R128.6 billion.

According to a statement from Engelbrecht, the sales rise in Supermarkets South Africa was bolstered by robust volume growth due to a 4.1% increase in customer visits overall and a 6.1% increase in average basket spend. Engelbrecht informed investors that Supermarkets South Africa’s January sales growth exceeded the first half’s reported rise.