Shoprite’s e-commerce platforms have been a game-changer in the retail industry, with the company now extending its on-demand delivery service to its wholesale Cash & Carry business. This move follows the massive success of its Checkers Sixty60 platform, which has become the leader in on-demand grocery deliveries across South Africa.
The latest interim results from Shoprite revealed that Checkers Sixty60 recorded an impressive 63.1% sales growth during the first half of the 2023/24 financial year. This growth contributed significantly to Shoprite’s half-year sales, which reached approximately R121 billion, marking a 13.9% increase year-on-year.
Expansion to Wholesale: Supporting Small Retailers
Recognizing the potential to support small businesses, Shoprite recently launched an online on-demand delivery service aimed at spaza shops and small retailers through its Cash & Carry wholesale business. This new service allows these businesses to browse and purchase a wide range of goods in bulk through a fully automated online shopping system.
The service promises competitive pricing and complimentary delivery within a 50km radius. Mark Cotton, Shoprite Group’s head of B2B business e-commerce, emphasized that the service aims to alleviate the high transport costs and demand challenges faced by small businesses and spaza shops.
“We are committed to supporting small businesses by providing innovative solutions to the specific problems these enterprises face,” Cotton stated. He added that the new service allows businesses to avoid holding excess inventory, thereby freeing up cash flow and time for business owners.
Streamlined Operations and Payment Flexibility
The new system also enhances the purchase and fulfilment process for Cash & Carry in-store traders, allowing them to access customer and product information, build and fulfill orders, and save orders for future use. The platform supports various payment methods, including credit and debit cards, electronic funds transfer, store credit, cash on collection, and Shoprite Money Market Accounts. Additionally, customers can benefit from savings and promotional offers through the Xtra Savings loyalty programme.
Checkers Sixty60: A Pandemic Success Story
Checkers Sixty60 was launched in November 2019 during the Covid-19 pandemic, initially serving select locations in Sandton, Johannesburg, and Cape Town. By March 2023, the app had over 3.1 million downloads and expanded to 466 locations by September 2023. Despite the initial belief that its popularity was driven by lockdowns, Sixty60 continued to grow rapidly even after restrictions were lifted.
The customer-facing app for Checkers Sixty60 was developed by the team behind Zulzi, one of South Africa’s first successful fast-moving consumer goods apps. In September 2023, Checkers Sixty60 introduced a loyalty programme, Xtra Savings Plus, offering a R99 monthly subscription with benefits such as unlimited free Sixty60 deliveries (for orders over R350), a 10% discount on in-store purchases, double personalised offers, and a no-commitment cancellation policy.
Strategic Partnerships and Technological Innovations
Around the same time, Checkers partnered with Discovery Vitality to offer the HealthyFood benefit, further encouraging healthier food choices for customers. Neil Schreuder, Shoprite’s chief strategy and innovation officer, highlighted the health benefits of this partnership for Checkers and Sixty60 customers.
Shoprite attributes much of its recent success to the rollout of SAP’s Enterprise Resource Planning (ERP) software. The ERP system has been crucial in managing stock, pricing, promotions, and real-time sales, ensuring seamless operations for both in-store and online shopping experiences. Despite initial rollout challenges, the system's implementation has been a significant factor in the company's impressive growth and efficiency.
Shoprite’s innovative e-commerce strategies, epitomized by the success of Checkers Sixty60 and the expansion into the wholesale market, are transforming the South African retail landscape. By leveraging technology and strategic partnerships, Shoprite is not only enhancing customer convenience but also providing critical support to small businesses and spaza shops across the country.
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