Tag: Mr D

By Darren Parker for Engineering News

Retail chain Pick n Pay and online store Takealot have signed a commercial services agreement which will enable customers across South Africa to buy Pick n Pay food, groceries and liquor on a new platform on the food delivery services application (app) Mr D.

In a statement issued on 17 May, the companies said the new service would bring together their respective strengths.

Pick n Pay would bring its expertise in running fresh food and grocery retail outlets, as well as its nationwide store network, as well as its Smart Shopper loyalty programme.

Meanwhile, Takealot will bring online retail and technical expertise, as well as its established delivery network.

Under the agreement, when customers open the Mr D app, they will be offered the choice to either buy groceries or order meals from restaurants. By clicking on the option to buy groceries, customers will enter a dedicated Pick n Pay food and grocery digital store in the Mr D app.

Customers will be able to browse and select the items they want to buy and then create their baskets. Once the order is submitted and paid, Pick n Pay will pick and pack the order from the nearest Pick n Pay store, which will then be collected by a member of the Takealot delivery fleet and delivered to the customer.

Pick n Pay’s Smart Shopper loyalty programme will be embedded into the Mr D app so that customers will still be able to earn points when buying Pick n Pay groceries through the app.

“By working with Takealot, customers will … benefit from a bigger, better, faster and more exciting offer … This is a new era for Pick n Pay and for its customers. There is huge potential for omnichannel retail in this country.

“Through this agreement with Takealot, we intend to regain market leadership in online grocery, and to do so in a sustainable and profitable way,” Pick n Pay CEO Pieter Boone said.

He added that the company planned to increase its online revenue eight-fold by the 2026 financial year.

Takealot executive chairperson Kim Reid believed Mr D’s 2.5-million customers would be “delighted” to see a Pick n Pay grocery offer appear on the platform.

“The combination of Pick n Pay’s reach, quality and pricing, together with Takealot’s … technology and scalable delivery network is a recipe for success. Scalability will be a huge advantage. Takealot … currently delivers over five-million packages per month, with the ability and ambition to serve many more customers as demand for this offer grows,” Reid said.

Pick n Pay and Takealot intend to launch the service on a trial basis in Cape Town in August, with plans to roll it out nationwide by the end of the 2023 financial year.

 

Big growth for Takealot and Mr D Food

By Jamie McKane for MyBroadband

Naspers has released its financial results for the year ended 31 March 2020, showing impressive revenue growth for Takealot and Mr D Food.

“Takealot, South Africa’s number 1 etailer, extended its leadership and grew Gross Merchandise Volume (GMV) 46% year on year in local currency,” Naspers said.

“Takealot’s trading loss reduced by 20% in local currency and would have improved more, but for investment in the promising food delivery business.”

Naspers said this growth was driven partly by improving gross margins and disciplined management of operating costs.

Takealot recorded revenue growth of 28% in local currency, one of the main drivers of which was the marketplace business, which grew GMV by 77% year-over-year.

“Mr D Food, South Africa’s leading food-delivery service, continues to scale as it expands the local market for food delivery,” Naspers said.

Naspers also noted that Takealot was allowed to sell and deliver only essential items in the first phase of the COVID-19 lockdown, and Mr D Food was unable to operate while takeaway restaurants were closed.

Surge in demand
The reopening of e-commerce under the national lockdown has resulted in a surge in demand for online shopping.

This, in turn, has led to Takealot and other online retailers being flooded with orders which has resulted in significant shipping delays for many products.

A source close to Takealot told MyBroadband the company is now generating close to R1 billion in sales per month – around double their usual volumes.

Takealot did not confirm these numbers when it was asked for comment, but other e-commerce players also told MyBroadband their sales have more than doubled in recent weeks.

Many other online shops have increased their expected delivery times by over a week to address logistics bottlenecks.

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