Woolworths vs Pick ‘n Pay vs Checkers

Posted on

South Africa is seeing a strong push from retailers to online shopping and same-day delivery, with the likes of Woolworths, Pick n Pay and Checkers looking to grab a slice of this growing segment.

Data from NielsenIQ, which provides benchmark tracking of most of South Africa’s largest retailers including online sales, shows that online food sales have increased 53% over the last three months.

The biggest driver of online sales for certain food products in terms of year-over-year growth was longevity milk which increased online sales by 35% and instant coffee sales increased 52%. Bread should also be in the average online food basket, as should alcohol.

“This can be caused by many consumers still working from home, full or part time and taking a break and making beverages like coffee that is usually made in the office. Ordering online allows them to make top-up purchases quickly and conveniently for these products to speed up. the event, ”NielsenIQ said.

Pick n Pay’s 2022 strategy document underscores the importance of emerging markets, noting that while online wholesale sales in South Africa are still in the early stages of growth, this segment is growing rapidly.

The penetration of online shopping in South Africa is about 1.1% but is expected to more than double to 2.6% over the next five years, he said.

While the figure looks small, with the entire South African wholesale retail market projected to be R855 billion at the same time, this represents over R22 billion worth of sales that all major retailers would want a piece of.

Pick n Pay has partnered with Mr D’s delivery platform to boost its own on-demand delivery capacity, where the group expects to increase online revenue by 700% in FY 2026.

Shoprite and Checkers have pioneered the on-demand delivery space in South Africa during the Covid-19 pandemic and locksmith, and now gain 75% market share in this segment.

Meanwhile, Woolworths is also increasing its presence in the online space and app delivery by expanding its Woolies Dash service to more stores and regions in South Africa.

In March, the group said that online food sales had accounted for 3.1% of food sales.

Due to my increasing demand, BusinessTech decided to look at how online offerings differ among these major retailers, including shipping costs.

When determining items to compare, the following are considered:

  • The product chosen is an everyday item of choice and does not necessarily represent a basket of goods for a particular household.
  • In all stores, at the cheapest products available in each category selected.
  • Prices do not take into account any promotions – original, non -promotional prices of used items.
  • The effects of Smart Shopper points, Xtra Rewards and WRewards are left out of the comparison.
  • The availability of items to buy online usually depends on the local store. The shops for this comparison are all located in and around Midrand and Centurion.

Retailers are compared

With same day delivery costs already standard at all retailers, the main price difference is down to the product.

Checkers is the cheapest for this particular store, with the lowest price online on eight of the 12 products, although Pick n Pay is only R10 more expensive. Woolworths, known as a premium brand retailer, has the most expensive retailers.

The total cost of food and delivery combined shows a R54.50 the difference between Checkers and Woolworths.

Same day delivery option

Although the delivery fee remains consistent across each retailer, there are differences in delivery time, availability as well as the integration of loyalty rewards.

Woolies Dash is the only retailer that has yet to offer the integration of rewards or promotional programs in the app. The retailer also has fewer locations – although it is in the process of a national launch.

In a recent shareholder presentation, Woolworths CEO Roy Baggattini said same-day delivery service will be available to about 100 stores by the end of the year.

Despite acknowledging that Woolies Dash is slower and later launched than competitors, Bagattini said it differs because it skews too much to deliver fresh groceries, incorporating a complete cold chain solution for delivery to ensure fresh produce stays the same after delivery. as will instore.

Delivery details Woolies Dash PnP is fast! Checkers Sixty60
Delivery slot All week: 10:00 – 20:00 Mon to Fri: 09:00 – 19:00
ana: 09:00 – 17:00
Store dependent. Time slot selected at checkout.
Est. delivery time Subject to time slots 60 minutes on the same day 60 minutes on the same day
Delivery distance Within 5km from the shop Depending on the location Depending on the location
Premises 31 regions in 3 provinces 392 stores in 7 provinces 158 regions in 9 provinces
item restrictions 30 items 35 items 35 items
Reward integration Not yes already yes already
Price R35.00 R35.00 R35.00

Checkers ’Sixty60 one-hour on-demand grocery delivery service launched in late 2019 and according to 22seven Insights head Simon Anderssen, in the last quarter of 2021, Sixty60 made up 75% of all desired wholesale shipments by the end. quarter 2021:

See: South Africa’s economy is now returning to pre-pandemic levels

Leave a Reply

Your email address will not be published.