Pick n Pay ups on-demand grocery delivery ante with Takealot deal

Looks to grow online sales eight-fold, come full year 2026.
Image: Waldo Swiegers/Bloomberg

JSE-listed grocery retail giant Pick n Pay on Tuesday revealed a partnership with the Takealot Group’s Mr Delivery service, which will see it ramping up its on-demand grocery presence, allowing customers to make online grocery orders that will be delivered in 60 minutes.

It announced the deal during a presentation on its revamped strategy plan, following the release of its latest full year results.

Read: Pick n Pay reports a rise in FY profit, ups dividend

Pick n Pay says the rollout of this new service will begin in August 2022 in Cape Town, and subsequently across the county by the end of the 2023 financial year.

“Pick n Pay has concluded a commercial services agreement with the Takealot Group which will see the launch of a dedicated Pick n Pay on-demand food, grocery, and liquor offer on the Mr D app, which currently enjoys over 2.5 million active customers,” the retailer adds.

The group’s Smart Shopper loyalty programme will also be linked.

“Under the agreement, when a customer opens the Mr D app, he or she will be offered the choice either to ‘buy groceries’ or ‘buy food from restaurants’. By clicking on ‘buy groceries’, customers will enter a dedicated Pick n Pay food and grocery experience….Once the order is submitted and paid, Pick n Pay will pick and pack the order from the closest Pick n Pay store. It will then be collected by a member of the Takealot delivery fleet, and delivered to the customer,” Pick n Pay explains.

Image: Supplied

Working at restoring dominance

As yet, Pick n Pay has been trailing far behind its largest competitor Shoprite, which has been dominating the on-demand grocery space with its Checkers Sixty60 app offering.

“Pick n Pay already offers an excellent on-demand grocery service through asap! By working with the Takealot Group, customers will now be able to benefit from a bigger, better, faster, and more exciting offer,” says Pick n Pay CEO Pieter Boone.

“It will be the best of Pick n Pay now on Mr D and benefiting from Takealot Group’s industry-leading platforms and service standards.”

Boone says that through this partnership, the retailer looks to regain market dominance in online grocery [services]. He also announced ambitions to grow Pick n Pay’s online sales by eight times, by the end of the 2026 financial year.

Read: How Checkers Sixty60 dominates the on-demand grocery market

“We are hugely excited to be partnering with the brand and the people at Pick n Pay, who share our values at the Takealot Group.  Mr D’s 2.5 million customers will be delighted to see a Pick n Pay grocery offer on the platform,” Takealot executive chairman Kim Reid says.

“The combination of Pick n Pay’s reach, quality, and pricing together with Takealot Group’s leading technology and scalable delivery network is a recipe for success.”

“Scalability will be a huge advantage. Takealot Group, at peak, currently delivers over 5 million packages per month, with the ability and ambition to serve many more customers as demand for this offer grows,” he adds.

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Home grocery delivery business is a race to the bottom as far as profits are concerned. they all lose money when costs are allocated correctly – from Mumbai to New York it is a loss leader. No special reason it will make money in SA.

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