Online sales at Pick n Pay grew amid slight increase in store sales

Pick n Pay is beginning the implementation of an artificial intelligence-based operational platform developed by the Canadian company OrderGrid in over 720 stores. This step followed a pilot project that allowed for a reduction of the average time employees spend picking online orders by approximately 30%.

This platform is designed to support the retailer's asap! online product service. It covers real-time inventory management, demand forecasting, order management, and in-store task control. The goal of the implementation is to help staff reduce out-of-stock incidents, identify empty shelves, and fulfill online orders more quickly.

Previously, Pick n Pay had already used computer vision to detect empty shelves and machine learning for planning picking routes. The retailer stated that this deployment marks the final stage of a two-year update to its technology platform. The company did not disclose how many stores participated in the pilot project, nor did it provide information on the cost of the deal with Toronto-based OrderGrid.

Enrico Ferigolli, Pick n Pay's Head of Omnichannel Retail, noted that using OrderGrid's tools will help teams pick online orders more efficiently, especially when dealing with large baskets.

He also reported that Pick n Pay's online sales increased by 35.4% over 26 weeks ending August 30th, although the group does not disclose its total business volume. Ferigolli added that the growth in online sales this year exceeds last year's figures.

This year, the retailer added several new features to the asap! app, including Penny—an AI shopping assistant that helps customers find products and build baskets using text, voice, and images. Last week, Smart Shopper Pro was launched—a subscription costing 99 Rand per month, which replaces the Checkers’ Xtra Savings Plus program.

Pick n Pay has introduced a paid tier for its Smart Shopper loyalty program, which will cost R99 per month. This price matches the cost offered by Shoprite for Xtra Savings Plus, the paid version of the Checkers and Shoprite loyalty program.

Smart Shopper Pro Program Details

The new program, named Smart Shopper Pro, was announced on Thursday. It offers participants unlimited free delivery of orders via asap! over R350, triple points on fresh produce, double points on BP fuel, and an additional 10% discount on in-store purchases, limited to R200 monthly. Customers can register through the asap! app. The basic Smart Shopper program remains free.

The set price of R99 is introductory, and at the time of the announcement on Friday, it was not specified whether the Pro cost would change in the future or when the promotional price would end.

It should be noted that the 10% discount has certain limitations: Pick n Pay states that it applies to maximum spending of R2,000 within a single purchase, implying a limit on the discount per store visit, rather than total store expenditure.

The terms of this program are largely similar to the offerings of Checkers Xtra Savings Plus, which Shoprite introduced in 2023. It includes unlimited free Sixty60 delivery on orders over R350 and a 10% discount on one in-store purchase per month, up to R200.

Pick n Pay claims that customers who frequently use online shopping can recoup the subscription fee just from the delivery costs. Company representatives noted: 'For customers who order groceries online weekly, four deliveries a month will cost R148 for delivery alone.'

Vince Viviers, Head of Innovation and Digital Transformation at Pick n Pay, stated that 'customers are increasingly looking for practical ways to make their money go further.'

Competition with Sixty60

The Pro program integrates with the free Live Well club within Smart Shopper. Members of both programs can earn six times more standard points when purchasing certain items such as fresh fruits, vegetables, fish, and chicken. New users who subscribe before November 30th will receive a R99 discount on their next asap! order.

This launch occurred a few days after Pick n Pay reported a 35.4% increase in its online sales over the six months ending August 30th. This figure aligns with the 34.5% growth in Sixty60 reported by Shoprite for the year ending in June. However, Pick n Pay did not disclose specific financial data about its online business. It is worth noting that Sixty60's revenue reached R25.5 billion.

Shoprite uses its own Xtra Savings Plus tier at R99 to retain loyal customers. Initially, the AI shopping assistant Pixie was only available to paid subscribers.

Now both retailers face a cheaper competitor—Amazon Prime, which launched in South Africa in June. It costs R59 per month and includes free delivery as well as Prime Video streaming.

Pick n Pay reported its half-year results for the 26 weeks ending August 30, 2026. The company managed to reduce its total loss by 31.9% to R299 million, while group trading profit increased by 58.1% to R490 million in the first half of the 2027 financial year.

The group's total turnover grew by 2.4%, and gross profit improved by 0.7 percentage points to 18.8%. Group CEO, Shaun Summers, noted that the business is showing progress despite market pressure, as the company has laid the necessary foundations which are beginning to yield results in a constrained trading environment.

Business still under pressure

The group's loss before tax and capital expenditure decreased by 56.2%, amounting to R139 million compared to R317 million in the corresponding previous period. Nevertheless, Pick n Pay's supermarket business continued to face difficulties, recording an operating loss of R516 million, although this was 16.9% less than the previous year.

Boxer remained a significant contributor, increasing its trading profit by 8.1% to R1 billion. In Pick n Pay supermarkets owned by the company in South Africa, sales grew by 2.4% compared to last year, exceeding domestic price inflation of 1.5%, indicating positive volume growth. Summers emphasized that improving the customer experience remains a central element of the recovery process, with over 50 new and updated fresh product lines introduced during the year.

Pick n Pay's turnover in South Africa declined by 0.5%, which is an improvement compared to the 1.4% drop recorded in the 2026 financial year.

Labour agreement supports recovery

The retailer also concluded consultations with key labour partners regarding a revised employment model in stores; the implementation of this model is scheduled for November 1, 2026. Summers stated that this agreement will help the business 'take a more competitive position, ensure job retention, provide greater confidence to our employees, and create a stronger foundation for future growth.'

Online operations showed further growth: Pick n Pay Online turnover increased by 35.4% in the first half of the year. Furthermore, online clothing sales grew by 137% from March to August compared to the same period last year. During the reporting period, the group ended with net cash of R10 billion, including R7.7 billion in Pick n Pay.

Despite the improvements achieved, Summers warned that high oil prices and consumer pressure will make trading conditions challenging for the remainder of the financial year. He added: 'Our foundations have become stronger, and our hard work is paying off despite the difficult market, but there is still much to do. Now we must build on this progress, further improve the customer experience, and ensure sustainable sales growth and operational improvements needed to return Pick n Pay to profitability.'