On Tuesday, JSE-listed grocery retail giant Peak N Pay announced a partnership with Mr Delivery Services of Teklat Group that will see it increase its on-demand grocery presence, allowing customers to order groceries online that will be delivered within 60 minutes.
It announced the deal during a presentation of its revised strategy plan, following the release of its latest full-year results.
Read: Pick n Pay FY reported profit, up dividend growth
Pick n Pay said the rollout of the new service will begin in Cape Town in August 2022, but will be rolled out across the county by the end of fiscal year 2023.
“Pick n Pay has concluded a commercial services agreement with the Teklat Group that will launch a dedicated Pick n Pay on-demand food, groceries and liquor offer in the Mr D app, which currently enjoys more than 2.5 million active customers,” the retailer added.
The group’s loyalty program will also be linked to Smart Shopper, meaning customers will be able to enjoy customer rewards through partnerships.
Restoration of Dominance
So far, Pick n Pay has lagged far behind its biggest competitor, Shopprite, which is dominating the demand-on-demand grocery space through the Checkers Six 60 app.
“This is a great day for customers. Pick n Pay already offers an excellent on-demand grocery service as soon as possible! By working with the Takealot Group, customers can now benefit from a bigger, better, faster and more exciting offer, “said Peter Boone, CEO of Peak N Pay.
“This will be Pick n Pay’s best in Mr. D right now and will benefit from the Takealot Group’s industry-leading platform and quality of service.”
Boone says that through this partnership, the retailer wants to regain market dominance in online groceries. He also announced his ambition to increase Pick n Pay’s online sales eightfold by the end of fiscal 2026.
Read: How Checkers Six dominates the 60 on-demand grocery market
“We’re thrilled to be partnering with the brand and the people at Peak N Pay who share our values with the Teklat Group. Mr D’s 2.5 million customers will be delighted to see a Pick n Pay Grocery offer on the platform, “said Kim Reed, executive chairman of Takealot.
“The combination of Pick n Pay’s reach, quality and price with Tekalot Group’s leading technology and scalable delivery network is a recipe for success.”
“Scalability will be a huge advantage. As the demand for this offer grows, with the ability and ambition to serve many more customers, the top-ranked Teklat Group currently delivers over 5 million packages per month,” he added.