Retail group Pick n Pay is expediting its digital aspirations, as online sales blossom. It is now aiming to grow its omnichannel retailing efforts.
The group announced today it intends to accelerate growth opportunities “that are less directly disrupted by interruptions to infrastructure”.
The retailer lamented the negative impact of Eskom’s power cuts, saying load-shedding has been disruptive, as customer demand is dampened.
In this regard, Pick n Pay, which today provided a market update of its performance for the 43 weeks ended 25 December, says it has accelerated innovation and growth of omnichannel retail.
Omnichannel retail refers to a strategy in which retailers engage customers through multiple digital and physical touchpoints.
In the period under review, Pick n Pay recorded a surge in online sales, saying: “Sales growth across all online platforms is a strong 69.6% year-to-date, with on-demand year-to-date growth in excess of 100%.”
The retailer adds it will now “accelerate digital ambitions, including new initiatives in omnichannel retailing and digital media, alongside plans to step-change our Smart Shopper loyalty programme”.
Turning to its on-demand grocery offering, Pick n Pay says it has successfully launched its own solution on the Mr D app, and is now available across the country, alongside the existing Pick n Pay ASAP.
Last year, Pick n Pay concluded a commercial services agreement with the Takealot Group, for it to launch a dedicated Pick n Pay on-demand food, grocery and liquor offering on the Mr D app.
Pick n Pay says the ongoing crisis in national electricity generation is having a profound impact on every part of society and the economy.
“The generation of emergency, localised, electricity supply is a severe cost to the group. The group spent an additional R346 million year-on-year on diesel to run generators at stores in the first 10 months of the year, with the costs concentrated over the latter months, and is currently on a run rate of approximately R60 million per month, depending on the stage of load-shedding experienced.
“In addition to the above, the group is experiencing increased generator repairs and maintenance costs and some additional food waste costs.”
Pick n Pay says government needs to rapidly come forward with a sustainable plan to solve the electricity crisis, including taking every step possible to ease the way for businesses to generate and use their own sustainable energy.
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