Checkers Sixty60 Dominates On-Demand Grocery Delivery, Estimating R10 Billion Annual Sales

In the modern retail landscape of South Africa, Checkers Sixty60, an on-demand grocery delivery service launched by Shoprite in 2019, has rapidly ascended to become a front-runner in the digital marketplace. Shoprite's latest financial results for the 26 weeks ending 31 December 2023, paint a vibrant picture of growth and success for the country's largest retail group - Shoprite Holdings Limited.

Boasting a comprehensive portfolio of brands, including Checkers, House & Home, OK, Uniq, and Computicket, Shoprite has reported a compelling 13.9% increase in sales carrying it to an astronomical R121.1 billion. A significant portion of this growth trajectory is attributed to the core South African supermarket segment, witnessing a 14.6% sales surge to R97.5 billion.

Zeroing in on Checkers and Checkers Hyper, these entities alone accounted for a 13.7% leap in sales, reaching a total of R38.5 billion during the six-month period analysed. Amidst these figures, Checkers Sixty60 stands out, bolstering sales by 63.1%. While Shoprite's tight-lipped stance on Checkers Sixty60's revenue details persists, CEO Pieter Engelbrecht vigorously upholds the profitability of the venture. Checkers Sixty60, crowned as the premier grocery app in South Africa, has exceeded 4.5 million downloads—remarkable evidence of its market dominance.

With a substantial expansion to 505 locations across the country, Checkers Sixty60 has played a pivotal role in the creation of 9,903 jobs, illustrating the social impact it has on the economy. These noteworthy figures capture the service's meteoric sales increase by more than tenfold since the initial half of 2021.

Despite not disclosing specific Checkers Sixty60 financials, a more incisive analysis by Daily Investor, taking cues from Shoprite's consolidated sales of merchandise in the 2023 financial year—which amounted to R214.96 billion—indicates that Checkers Sixty60 could potentially yield R10.75 billion annually. This estimation assumes that Checkers Sixty60's sales comprise precisely 5% of Shoprite's consolidated sales, as noted in the company's annual report.

Further investigation into Pingo, the logistics backbone of Checkers Sixty60, which was inaugurated via an alliance with the RTT Group, supports this revenue forecast. Pingo's disclosed revenue of R994 million alongside the information obtained from delivery drivers contracted to Pingo converge on the estimate that Checkers Sixty60 propels approximately R10.53 billion in sales annually.

Therefore, it stands to reason—synthesizng all calculations and driver observations—that Checkers Sixty60 contributes an impressive estimated R10 billion to Shoprite's annual revenue. This figure strictly pertains to product sales, meticulously setting aside delivery fees, which fall under Pingo's financial umbrella.

With such striking figures, Checkers Sixty60's imprint on the grocery delivery market is undeniable, presenting an archetype of e-commerce success and elevating Shoprite's status in the comprehensive retail marketplace.