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Pick n Pay reveals online food delivery growth
Pick n Pay reveals online food delivery growth

Pick n Pay reveals online food delivery growth

FMCG SUPPLIER NEWS - Apr 17th 2014, 10:06

Listed retailer Pick n Pay has announced a 27% rise in its online food delivery business in announcing results for the 52 weeks ended 2 March, 2014. 

“We have grown our online food delivery business by 27% over the year. We now serve more than 2,000 customers per week, and have extended the service during the year within the Western Cape, KwaZulu-Natal and the Free State,” Pick n Pay said.

This trend supports a recent study published by MasterCard, in conjunction with World Wide Worx, which found that South African shoppers are increasingly turning towards the internet to buy their groceries.

The report noted that consumers purchasing groceries (38%) online increased by 7% over the past year with the number of visits to these sites averaging at two per week.

“The products that consumers are buying suggest that online shopping is becoming increasingly mainstream, which also bodes well for local retailers,” said Arthur Goldstuck, MD of World Wide Worx.

“No longer is online shopping confined to books and DVDs, plane tickets and apps.”

Pick n Pay said that group turnover increased by 7.7% to R63.1 billion, with a trading profit, up 34% to R1 billion.

The shopping group reported a diluted headline earnings per share of 67.13 cents, from 53.70 cents before with a total annual dividend per share of 44.30 cents.

Pick n Pay noted a marginal decline in “other trading income” due mainly to reduced commissions as customers move away from purchasing airtime at the till to other digital platforms.

The retailer announced that it is strengthening its partnership with mobile operator, MTN to bring new financial services, including low-cost banking solutions.

In 2010, MTN and Pick n Pay launched Mobile Money – a money transfer system which offers customers a simple way to transfer money securely, and to buy goods in Pick n Pay and Boxer stores without needing cash or a debit card.

Since 2010, almost 2 million customers have used Mobile Money.

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.

The new Mobile Money account, to be launched by MTN and Pick n Pay in the coming weeks, will offer customers:

an opportunity to make higher-value transactions and daily cash withdrawals;
the ability to request a fund transfer from other Mobile Money customers;
access to ATMs;
the option to have a bank card, enabling customers to use their accounts more widely;
Pick n Pay smart shopper benefits, including double points and instant rewards when customers use Mobile Money to pay for their shopping in Pick n Pay and Boxer stores;
the option to sign up for a Visa debit card for a once-off fee of R29, with no monthly admin fee.

Pick n Pay said it now has 1,076 stores, comprising 643 company-owned stores and
433 franchise stores, across multiple retail formats and six southern African countries.

In addition, 52 stores, three of which trade under the Pick n Pay brand, are operated in Zimbabwe by an associate, TM Supermarkets.2014 Copyright, BusinessTech. All right reserved 

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