Pick n Pay announced a 27% increase in their online food delivery business when they released their annual results for the year ending March 2014.
According to Pick n Pay they now serve more than 2000 customers per week and have extended the service in the Western Cape, KwaZulu-Natal and the Free State.
This shows that online shopping is becoming increasingly mainstream in South African as shoppers are more likely to turn to the internet to buy goods and services. A recent report by MasterCard showed that consumers purchasing groceries online increased 7% over the past year, with the number of visits to these sites averaging at two per week.
This also shows that people are branching out in the types of products that they buy online. It is no longer just books, DVDs and plane tickets. People are increasingly looking for a wider variety of products.
Pick n Pay said that group turnover increased by 7.7% to R63.1 billion, with a trading profit, up 34% to R1 billion.
There was a marginal decline in ‘other trading income’ due mainly to a loss of commissions on airtime as customers move away from till purchases to digital platforms.
The retailer also announced that it is forming a partnership with MTN to bring a new range of financial services to customers, including low cost banking solutions.
As part of the partnership, Pick n Pay and at MTN will introduce a new sim card enabling customers to earn free airtime and data when they shop at Pick n Pay and Boxer stores using their Mobile Money account.
They will also be able to convert smart shopper points to MTN airtime or data at a discount.