Pick n Pay makes strategic investments to sustain growth

Date : 28 October 2020

Jon Wright

Head of Insight - RA EMEA

Following on from its results announcement, Pick n Pay has set out how it is aiming to continue to grow sales, both in South Africa and across the region more widely.

To grow presence for Boxer banner

Pick n Pay said it could double the number of Boxer stores to 600 in five years as it looks to target underserved low and middle-income shoppers. The retailer believes long-term growth will come from ‘the mid to low value segment’, with Boxer well positioned to do this through its limited range of discount products. It will focus on adding physical stores in the long term, with ecommerce less important for its target market.

Acquires Bottles to support online expansion

After seeing online sales double in H1, Pick n Pay said it had acquired Bottles, an on-demand alcohol delivery app. The acquisition should be completed by November, with Pick n Pay saying Bottles’ existing management and staff moving across to it. Pick n Pay’s chief executive, Richard Brasher, said the purchase would ‘enable us to build on the tremendous momentum we have achieved by integrating the Bottles business into our existing online offer, and applying Bottles’s agility, innovation and marketing flair across our platform

The retailer has been partnering with Bottles recently, which saw strong growth during the COVID-19 pandemic and lockdown, with Bottles adapting its app to enable the delivery of on-demand grocery essentials. The companies said since adding the grocery essentials, the app had been downloaded more than 700,000 times. Shoppers can purchase from a range of 7,000 SKUs and get their orders delivered in an average of 90 minutes.

Expands range of services it offers

The retailer will launch Pick n Pay Mobile and Boxercom, under its Boxer chain, to provide shoppers with more affordable mobile data. Pick n Pay said shoppers’ changing living patterns, such as working from home, had increased their need and desire for affordable solutions. Announcing the plan, Brasher did not provide a timeline for the services’ launch.

First store in Nigeria to open ‘soon

Pick n Pay is set to open its first store in Nigeria in conjunction with local partner A G Leventis (Nigeria). The retailer’s entry into the country comes at a time when competitors, like Shoprite, are exiting, due to currency devaluations and logistical challenges, amongst others. Pick n Pay said its approach to entering and growing in Nigeria would differ from rivals and would centre on opening smaller neighbourhood stores, rather than flagship stores in shopping centres. It also stressed the importance of its local partner, which would provide ‘the local know-how, the understanding of the regulatory process and the local stakeholders’.

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