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.
Retailer Pick n Pay Clothing has launched a partnership with online fashion retailer, Zando.
According to Pick n Pay, from Tuesday, Pick n Pay fashion ranges will be available for purchase on Zando, extending accessibility beyond its physical stores across the country and online at www.pnpclothing.co.za.
Pick n Pay Clothing general manager Hazel Pillay said: “Pick n Pay Clothing customers will have more access to our clothing ranges through Zando, and we look forward to welcoming new customers whom we know will enjoy the quality and affordable pieces of highly desirable fashion that we offer.”
Pick n Pay said through Zando, which was well-established in online fashion and clothing retail, it would be able to diversify its customer base by reaching more customers.
Pick n Pay Clothing will make its debut on www.zando.co.za and on the Zando android and iOS apps.
“We are looking forward to offering our customers another channel to access our popular clothing ranges, and to welcoming new customers into the fold,” said Pillay.
Pillay said the collaboration with Zando was the logical next phase for Pick n Clothing which has fast built a reputation for offering affordable and accessible brands that are on-trend and made with quality materials.
“We are proud to offer savvy and fashion-forward customers everyday essential wear that makes it easy to update their wardrobes whenever they want and helps them keep up with the latest trends without breaking the bank,” he said.
Zando.co.za was established in 2012 and has since become one of South Africa’s biggest online fashion platforms. It forms part of the Jumia Group, Africa’s leading e-commerce platform.
Zando CEO Grant Brown said: “By entering into a partnership with Pick n Pay Clothing, we are extending value to our customers by increasing the assortment on our platform. Having Pick n Pay Clothing on board provides our shoppers with access to the latest trends at affordable prices, which we are excited about.”
Pick n Pay Clothing has become acknowledged as a progressive brand, recently launching its second instalment of limited-edition designer wear collections in collaboration with young emerging SA designers, mentored by veteran SA fashion designer, Gavin Rajah.
On Monday, Clicks announced plans to buy the retail pharmacy business of Pick n Pay, including 25 in-store pharmacies which will be rebranded to Clicks.
All staff employed in the pharmacies will transfer from Pick n Pay to Clicks.
While Shoprite has seen strong growth recently from its pharmacy group Medirite and medical supplier Transpharm, this is not a focus for Pick n Pay.
“We have recently set out our key strategic objectives in terms of future growth, and these do not include the development of a large pharmacy division,” Pick n Pay chief operating officer Adrian Naudé said in a statement. “Our main objectives in terms of transferring our pharmacy business have been to ensure that our customers have a seamless transition and maintain the quality of service they have been used to with Pick n Pay, and that our pharmacy staff are looked after. We are pleased to have reached an agreement with Clicks on both of these objectives.”
Clicks is the largest retail pharmacy network in the country, and the new deal will increase its national presence to 632 pharmacies.
“Currently 50% of the country’s population live within 6km of a Clicks pharmacy and we aim to improve this over time as we get closer to customers,” Vikesh Ramsunder, Clicks CEO said in a statement. The acquisition of the pharmacy chain from Pick n Pay will “accelerate” this strategy, he added.
The proposed transaction is subject to approval by competition and regulatory authorities.
By Philippa Larkin for IOL
Pick n Pay will cap its gross profit margin for ginger and garlic, which is good news for cash-strapped consumers, following recent public complaints that fingered seven retailers for price gouging.
South Africans are struggling to afford basic foodstuffs amid rising prices.
The move follows public complaints against seven retailers about the rising cost of these items. Picture: Brendan Magaar, ANA.
In recent months, the Competition Commission has received a number of complaints from members of the public alleging that certain Food Lover’s, Spar, Shoprite Checkers and Pick n Pay stores had increased prices of ginger and garlic.
The Competition Commission said yesterday it was pleased to announce the signing of a memorandum of agreement with Pick n Pay last week – the first retailer to do so – and it hoped to formalise similar agreements with other national retailers.
“This confirms that the company has capped its gross profit margin for ginger and garlic essential food items for the period covering January 28, 2021 to April 1, 2021, which may be extended. Pick n Pay has also instructed its franchises to price no higher than the corporate store price on ginger and garlic,” it said.
The commission said it had engaged with all the affected retailers, and expressed its concerns that the alleged significant price increases of ginger and garlic in certain retail outlets could result in a contravention of Consumer Protection Regulations and other relevant provisions of the Competition Act. In terms of the Consumer Protection Regulations, ginger and garlic fall under the category of “basic food and consumer items”.
It said although the wholesale prices for these products had increased due to heightened consumer demand during the second wave of infections, the commission was of the view that this did not warrant the large increase in absolute margins seen in some instances.
The Pietermaritzburg Economic Justice and Dignity research group published its Household Affordability Index for January 2021, which showed that the cost of a basic food basket had increased drastically.
The index showed that the price of maize meal and other maize products continued to increase, with basic and core food items such as sugar beans, rice, flour and bread seeing hikes of between 31 percent and 68 percent.
It said the cost of a basic food basket in January was R4 051.20, which was way above the monthly minimum wage.
Pick n Pay CEO Richard Brasher has announced they are set to launch PnP Mobile, promising to offer “more data for less”.
While details around Pick n Pay’s mobile plans remain sketchy, Brasher provided some details about their planned offerings.
He said South Africans can expect to see two new mobile virtual network operator (MVNOs) brands – PnP Mobile and Boxercom.
Subscribers of these services will enjoy benefits when they support Pick n Pay or Boxer stores.
“If you join Pick n Pay Mobile or Boxercom and you shop in our stores, you are going to get more data for less, and in some occasions, you are going to get it for free,” he said.
He said the thing which drove them to launch a mobile operator is the strong demand for mobile data.
“Data is the oxygen of individuals and communities. Data is now the elixir of life,” Brasher said in the company’s recent results presentation.
Brasher said they will shortly announce their partners and how they are going to “do this”.
“It is something fun to look forward to,” he said.
Source: Supermarket & Retailer
More than 1 400 staff members at Pick n Pay have taken voluntary severance packages since March, the retailer has said in a trading update.
The Cape Town-based group’s voluntary severance programme (VSP) offers staff 1.5 weeks of pay per completed year of service, plus four weeks of notice pay.
According to the group, its objective is to reduce employee costs.
The group said the cost of the compensation payments to departing employees will be borne in the first half of the current financial year.
Pick n Pay said it expects the programme to be cost neutral for the full financial year, as compensation packages will be fully recouped through cost savings.
“In subsequent years, the reduction in employee numbers will have a positive impact on the operating costs of the group. Alongside other strategic actions designed to improve the Group’s performance, the VSP is a major step forward in making the business more competitive and more sustainable” the update read.
The group is projecting that its headline earnings per share for the 26 weeks to end August 2020 will be down by more than 50% as it grapples with the effects of Covid-19 on its business. This excludes the impact from hyperinflation accounting in Zimbabwe.
“I want shareholders to understand and be reassured that the impact on our first-half earnings that we are announcing today derives solely from the specific circumstances of the pandemic, the impact of measures taken by government and ourselves to mitigate it, and the once-off costs of our VSP which has made the Group leaner and more competitive,”said Richard Brasher, CEO of Pick n Pay, in the statement.
Pick n Pay’s Smart Shopper will this month automatically load personalised discounts directly onto a customer’s loyalty card.
Using advanced machine learning techniques, Pick n Pay gives each Smart Shopper eight personalised discounts every two weeks. These are unique to each customer and offer cash-off savings, discounts or boosted points for products they buy most often.
“This algorithm predicts what a customer is likely to buy and helps us work in conjunction with our partners to give customers personalised savings on the items they want or plan to buy,” says John Bradshaw, retail executive: marketing at Pick n Pay.
Technology improvements means that customers no longer have to activate their personalised discounts like they had to in the past. To receive these discounts, customers will need to ensure they have given permission to be contacted, and customers can update this personal preference via the app, website, or kiosk.
From 14 July 2020, when personalised discounts are automated, Smart Shoppers who have opted in for communication will notice the discounts automatically applied and visible on their till slip when they swipe their card.
Smart Shoppers were issued over R4 billion in personalised vouchers last year, and redemptions of these vouchers has increased year-on-year since it was launched in March 2017 after customers asked for more immediate savings on everyday items.
The future of loyalty programmes lies in offering real value in the most seamless way possible, says Bradshaw. “All Smart Shoppers are earning and spending their points but many weren’t reaping the full rewards of the programme by not regularly loading the personalised discounts.
“This improvement will instantly help put money back in customer’s pockets at a time when budgets are under pressure.”
Free to join, Smart Shopper has four dedicated clubs, namely Wine, Baby, Pet and Coffee. Bradshaw explains that they are another way to boost savings and earn Smart Shopper points, especially if customers purchase items within these categories regularly.
To further offer relief to customers, Pick n Pay also recently announced it will invest R500 million of its efficiency savings into offering customers bigger deals and more savings on essential grocery items at a time they need it most.
Pick n Pay Online is now offering a larger range of non-food items for delivery. This followed the recent announcement by Minister Ebrahim Patel that all permitted goods may now be sold online.
The non-food items that will be available online for delivery or “Click n Collect” under level four lockdown includes home entertainment items, such as televisions and gaming, and white goods, such as fridges, freezers, ovens, dishwashers, washing machines and tumble dryers. Camping and patio furniture will also be available.
Delivery of these heavier items is available in all major cities nationally and “Click n Collect” lets customers purchase their items online and collect their order from any hypermarket.
The COVID-19 outbreak has significantly accelerated the demand for online shopping and many shoppers turned to Pick n Pay Online for their grocery shop. Since the end of March 2020, Pick n Pay’s online shop has had more than 144,000 new customers registered online. This is 8x more registrations than the previous year. Pick n Pay online also experienced a 200% increase in active transacting online customers during the period.
Last year the retailer significantly enhanced its online offering, which included changing its logistics partner and investing in a dedicated online customer services team. Jessica Knight, Head of Pick n Pay Online, says that this helped them rapidly increased the online shop’s capacity and reach to meet the needs of many new customers who have turned to online shopping since the country went into lockdown.
“We have increased our delivery slots for our online shop, which has meant customers can now get a slot within a few days of placing their order. Customers can currently get a delivery slot within three to five days, depending on the area.
Knight says they are seeing a high percentage of returning customers. “This shows how many first-time online shoppers are really enjoying the ease and convenience of online shopping. We’ve also made it very easy to shop online, for instance, customers have their own personalised ‘aisle’ with their favourite items and they can create a shopping list for regular purchases.”
Pick n Pay also leveraged its partnership with the Bottles app to launch their “Grocery Essentials” same day delivery service. This was done within days of the lockdown being announced and they now pick from over 95 stores across the country. This extended reach has helped Pick n Pay deliver to areas previously outside its delivery network, such as Port Elizabeth, Soweto and Diepkloof.
Knight explains the trends they have seen with customers using their online delivery options during lockdown. “Our average PnP online shop customer will place a larger order through our website and these are usually weekly or monthly shops to restock core grocery items, and cleaning or hygiene products. Our ‘on demand’ customers, placing orders through the Bottles app, generally shop more frequently and use the same-day delivery to top up on essential items and fresh produce.”
Many of Pick n Pay’s franchise stores are still offering ‘Click Direct’ which encourages customers to email or WhatsApp their orders directly to the store, for collection or delivery.
By Masabata Mkwananzi for IOL
As the entire country is still under lockdown and fighting the spread of coronavirus, Pick ‘n Pay has launched a digital grocery voucher to help customers during this period.
The digital grocery voucher will be available through Webtickets and Pick ‘n Pay Money counter. This new innovation will provide a convenient way to purchase and send digital grocery vouchers. Vouchers will be available from R50 up to R1 000 and once purchased, customers can simply send the digital grocery voucher to anyone via SMS or email.
Chief Information Systems Officer at Pick ‘n Pay Richard van Rensburg says the timing of this dynamic new feature is particularly relevant as many customers look to support each other, from a distance.
“Many have been separated from their friends, family, domestic workers, staff or colleagues during the lockdown. The new digital grocery voucher helps you virtually send essential food items to each other’s homes,” said Rensburg.
He added that this new feature will also help customers support a local charity that may be in need of supplies during this difficult time. The retailer recently launched its ‘Feed the Nation’ campaign which aimed at providing food for those who don’t have a support system to fall back on during this crisis and many customers have asked for a way to send a digital grocery voucher to those they want to help.
“We believe this will enable us and our customers to help feed more individuals in need.”
How it works:
- Go to www.webtickets.co.za/pnpvouchers to buy a voucher or any Pick n Pay Money counter.
- Once bought, customers can send the digital grocery voucher via SMS or email
- The voucher recipient will get a message via the platform selected (SMS or email) with the voucher value and unique voucher code, which they then use when paying for their purchases.
- Recipients will receive a notification to say you sent them a voucher and will be given the voucher number to redeem when shopping in-store only
- The vouchers are valid for three years.
- The digital grocery vouchers can be used in any Pick n Pay store and it is not a replacement for physical gift cards, but rather an additional feature to add more value to customers.
By James de Villiers for Business Insider
Retailer Pick n Pay, in collaboration with the Bottles delivery application, is now offering consumers same-day deliveries of essentials at over 70 locations for a cost of R60.
The partnership between Pick n Pay and Bottles previously allowed for the delivery of liquor, but this has been changed to grocery essentials in light of the national lockdown.
It differs from other delivery applications such as Zulzi in that Bottles directly integrates with Pick n Pay’s database to ensure that whatever a consumer orders is available in stock.
This service is in addition to Pick n Pay’s online delivery offering where consumers can have food delivered by selecting available delivery slots at a cost of R60 per delivery.
Most of these slots have however been taken due to increased demand during the national lockdown, despite significantly increasing the amount of slots.
Pick n Pay said the re-engineered offering from Bottles allows consumers to have access to products at in-store prices faster during the lockdown.
Consumers now have the choice of over 1 500 products, and can order over 30 different products in one order (limits may apply per product).
Areas covered by bottles deliveries include suburbs in Johannesburg, Pretoria, Cape Town and Durban. More stores are expected to be introduced across the country.
“We will continue to review products offered on the Grocery Essentials app based on customer feedback, and add the most popular items. We want to make this as convenient for customers as possible,” Pick n Pay’s online head Jessica Knight said.
Orders can be placed Monday to Saturday between 08:00 and 15:00, and on Sunday between 08:00 and 13:00. Items will be delivered until 19:00, except for Sunday when they will be delivered until 17:00.
The delivery cost includes a R45 delivery fee and a R15 service fee.