Checkers Sixty60 Spearheads Shoprite's E-Commerce Triumph with Expanding On-Demand Delivery Services

In the bustling landscape of South African e-commerce, the Shoprite Group's Checkers Sixty60 has emerged as a colossal force in on-demand grocery deliveries, recording an exceptional 63.1% sales growth during the first half of the 2023/24 financial year. This significant surge propelled Shoprite's overall half-year sales to an astounding R121 billion, marking a stellar year-on-year increase of 13.9%.

Avowing its commitment to invigorate local small businesses, Shoprite’s recent foray into an online delivery service for spaza shops via their Cash & Carry wholesale business is a revolutionary step. This service, informed Mark Cotton, Shoprite Group's head of B2B e-commerce business, is conceived to alleviate the burdens of high transport expenses and inventory demands that small retailers encounter, enabling them to indulge in the convenience of browsing and making bulk purchases online within a substantial 50km delivery radius.

For the local traders, this integration of automated shopping systems is a boon, offering not only competitive pricing but also a streamlined purchasing process - a key to enhancing the efficiency of Cash & Carry's in-store operations. The indulgence in various payment methods ranging from credit and debit cards to electronic funds transfers and Shoprite Money Market Accounts, coupled with the benefits of the Xtra savings loyalty programme, cater to a frictionless customer experience.

Since its inception in November 2019, Checkers Sixty60 has seen explosive growth. Surpassing the hurdle of the Covid-19 pandemic, when it was an essential service during lockdowns, the platform amassed over 3.1 million downloads and expanded to 466 locations by September 2023. Such growth is a testament to a well-received concept conceived by the same innovative company that launched Zulzi, another leading fast-moving consumer goods app in South Africa.

In a bid to cultivate customer loyalty, Checkers Sixty60 launched the Xtra Savings Plus programme, providing customers with unlimited delivery benefits, bespoke promotions, and in-store deals for a modest monthly fee. Aligning with its wellness initiatives, the partnership with Discovery Vitality to offer HealthFood benefits underscores Checkers' synergy with health-driven enterprises, fostering healthier food selection among consumers.

A significant contributor to Shoprite's thriving success is attributed to the meticulous deployment of SAP's Enterprise Resource Planning (ERP) software. The software ensures meticulous inventory and real-time sales integration critical for precise customer order fulfilment. Despite initial teething problems that adversely impacted earnings, the full implementation of SAP has reaped operational enhancements that harmonize both in-store and online price parity, ensuring customers enjoy a seamless shopping experience.