The online grocery sector is booming in South Africa — but are traditional shoppers paying the price?
Driven by middle class and wealthy consumers, online shopping is transforming leading grocery retailers Checkers and Pick n Pay into smart digital powerhouses.
The online grocery market is one of the fastest-growing e-commerce sectors, with users expected to double from 11.7-million in 2025 to more than 21-million by 2029, according to Statista.
Major players are making significant investments. In the last two years, Shoprite allocated about R14.5bn (around 3% of sales) towards digital growth, including expanding its Checkers Sixty60 market-leading delivery service and strengthening logistics.
But is this speedy evolution creating a shopping experience that frustrates traditional shoppers?
My wife, a loyal grocery shopper, summed it up perfectly: “I prefer Pick n Pay because they don’t have as many online order pickers clogging the aisles.”
For traditional shoppers, online pickers competing for space and products can be a nuisance, especially in stores not optimised for dual use.
To create a harmonious shopping environment, grocers should invest in re-engineering processes that cater to all types of shoppers
Checkers Sixty60, for example, has turned many stores into hybrid spaces for in-store and online order fulfilment, sidelining traditional shoppers. In-store shoppers often have to navigate congested aisles with pickers rushing to meet delivery deadlines, causing frustration on both sides.
Pickers struggle with navigating a store layout that doesn’t prioritise efficient order fulfilment, while traditional shoppers feel their shopping experience is compromised. This dynamic has some questioning whether grocery giants like Checkers have prioritised the speed of deliveries for online shoppers at the expense of in-store comfort.
My wife and other shoppers at smaller shopping centres feel shortchanged by having to give way to these “Speedy Gonzales” delivery chaps at Checkers — every 60 seconds or so.
The push for online grocery services may appear profitable on paper, but it comes with trade-offs.
Grocers like Checkers and Pick n Pay have invested heavily in technology to support online orders, but they are yet to implement solutions that harmonise these new digital needs with the expectations of traditional shoppers.
Checkers, for instance, seems to be racing towards the future without sufficient strategies to prevent congestion in the aisle and ensure a smooth in-store experience. Checkers Sixty60 has also started establishing “dark stores” to enhance its capacity to serve consumers with speed. But it appears there is a pressing need to create more dark stores.
While Pick n Pay’s partnership with FNB eBucks announced this week introduces innovative rewards for using their asap! delivery app, the company has managed to avoid the heavy congestion Checkers faces, largely because they haven’t scaled their online delivery services to the same extent.
To create a harmonious shopping environment, grocers should invest in re-engineering processes that cater to all types of shoppers:
- In-store layout optimisation: Dedicated zones for online pickers can reduce aisle congestion for traditional shoppers. Separate storage areas for popular online order items could streamline picking.
- Data-driven shopper management: Using loyalty programme data, grocers could predict peak shopping times and adjust picker activity accordingly. Machine learning and AI solutions could help stores determine when and where congestion might occur, allowing for real-time adjustments.
Shoprite is doing that but appears to be not implementing it properly in certain shops across the country where online orders are a hit.
Grocers should reward in-store and online shoppers equally, encouraging a balanced shopping experience that doesn’t push one over the other.
While suburbs are at the forefront of online grocery service, townships and rural areas often remain underserved. As digital infrastructure expands, grocers can tap into these markets with modified services that cater to local needs, preventing smaller, township-focused competitors from cornering this potential growth area.
Shoprite’s Usave eKasi stores, for example, focus on affordable essentials for township residents but haven’t fully tapped into the digital potential that could bring them closer to Checkers' Sixty60 standards.
As townships become more connected, grocers must prepare for a township e-grocery market that demands innovation suited to local needs.
However, South Africa is likely to see a slowdown in digital connectivity after the Vodacom-Maziv deal expected to spur fibre infrastructure was blocked by the country’s competition watchdog.
That said, grocers must embrace a strategic approach to managing traditional and digital shopping experiences.
By re-engineering processes with operational efficiency and personalisation at the core, grocers can enhance the experience for in-store shoppers, online pickers, and remote customers alike.
Bridging the gap between speedy online orders and a satisfying in-store experience will position these retailers to win long-term loyalty and ensure they serve all markets effectively.
In summary, South Africa’s online grocery boom offers immense growth potential, but without structural changes grocers risk alienating traditional shoppers and missing out on township growth.
Balancing speed, efficiency, and the in-store experience will require thoughtful re-engineering, but with the right investments, South African grocers can rise to meet this challenge.
However, they must find creative ways to bring on board neglected township and rural areas grocers.
• Lourie is founder and editor of Tech Financials
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