Pick n Pay has just launched its online distribution centre in Gauteng, the first of its kind in the province. This follows the opening of its Cape Town online distribution centre, which made it the first major brick and mortar grocery retailer in South Africa to serve its online consumer customer base with a dedicated fulfilment centre.
“Our new distribution centre will enable us to significantly improve service to our Gauteng online shoppers,” said Richard van Rensburg, Deputy CEO of Pick n Pay. “At the same time, our online distribution capacity is significantly increased, enabling us to handle the rapid growth we are experiencing in online sales.”
Evolving the online shopping experience through a multichannel approach
“This distribution centre represents a significant investment in Pick n Pay’s online business, which is one of the fastest-growing divisions in our business, and represents a conviction by the company about the long-term opportunities from online,” said Van Rensburg.
“It is the next step in our journey to build an advanced, convenient and simple omnichannel shopping experience for our clients. Later this year, we will launch a new online shopping website and an upgraded version of the Pick n Pay mobile app.”
Michael Cotterell, head of Pick n Pay Online, added: “We were encouraged by the performance of our dedicated online facility that was opened in Cape Town 18 months ago. We experienced a significant acceleration in sales growth after the facility went live, and we are confident our Gauteng customers will benefit from a similar facility.”
In the past, orders placed by Gauteng customers via Pick n Pay Online were fulfilled by a store close to the customer’s location. “There are significant advantages to serving customers with a dedicated facility instead of picking online orders from a store near to their delivery location,” said Cotterell.
“Firstly, availability improves as online customers are not competing with customers in store for products. Secondly, freshness improves as the supply chain is shortened and the integrity of the cold chain is enhanced. Products move directly from our distribution centre to the customer and do not go via a store, thereby improving shelf-life for customers. Thirdly, we are able to significantly increase the range of products we offer to our customers. Our facility has the capacity to hold almost three times the number of product lines as a regular store. Our aim is to offer our online shoppers the widest range possible from Pick n Pay.”
“Today’s online consumers want convenience, affordability and choice”, said Van Rensburg. “That’s what our new Gauteng fulfilment centre is able to give them.”