Retail giant Pick n Pay has reported strong sales growth across its digital platforms, with its online retail division reaching a 60.6% year-on-year increase.
According to Pick n Pay’s half-year results for the 26 weeks ended 25 August, despite trade losses, the business saw solid momentum across its clothing and online units.
The first six months remained challenging; however, due to improved store operations and enhancements to its Pick n Pay asap! on-demand delivery app, the retail giant is showing a turnaround.
“Trading losses in the group's Pick n Pay business grew 9.1%, in line with budgets, to R718.9 million, due to H1 FY25 gross profit margin contraction.
“Clothing gained further market share over the period, with sales growth of 9.8%, notwithstanding difficult market conditions. Pick n Pay Online built on its impressive growth of last year, delivering a further 60.6% increase in year-on-year online sales, driven by improvements in its customer offering and operating efficiency,” notes a statement.
The online sales growth was primarily fuelled by the popularity of the Pick n Pay asap! app and Pick n Pay Groceries on the Mr D app, which are both available through 550 stores nationwide, it says.
Group turnover rose by 3.7% to R56.1 billion. Trading profit rose by 159% to R81.5 million and headline earnings per share declined by 16.3%, to a loss of 136c.
Pick n Pay CEO Sean Summers says the retail giant is quietly confident that it will reduce trading losses in the Pick n Pay segment by as much as 50% for the full-year.
Last year, Pick n Pay added smart artificial intelligence (AI)-assisted search tools to its asap! shopping app, as the retailer ramped up its e-commerce strategy.
The new addition formed part of upgrades to give customers a faster way to shop online and get their groceries delivered in 60 minutes.
The AI search feature helps customers to instantly find the products they are searching for, even when making a typo, says the retail giant.
The enhanced ASAP! app now has over 25 000 searchable products and product alternatives, which are chosen upfront in case of any "out-of-stock" items, adds the retailer.
Share