Pick n Pay has a warehouse somewhere in the Cape dedicated to supplying online orders, and driving sales in that, to be honest, pampered geography.
Now another is planned, in Isando outside Johannesburg.
50%+ of online shoppers make more than R20 000 a month, while 30% earn between R6 000 and R20 000. It is this latter group that Pick n Pay want to target.
In addition, 80% of South Africans do not own cars, but do 60% of all grocery shopping, and you can kind of see where this is going.
An argument may be made that an opportunity exists for the Group to bring online to its middle-income shoppers, perhaps through the Boxer Superstores chain. What remains to be seen is whether delivering to these shoppers at a time convenient to them may be made profitable.
Pick n Pay, an early adopter in online grocery retail, is trying. And when the profits do flow, they will be among the first to cash in.
Source: Trade Tatler