This follows the success of its Checkers Sixty60 platform, which dominates on-demand grocery deliveries in the country.

The company鈥檚 latest interim results revealed that the on-demand grocery delivery service recorded聽聽during the first half of the 2023/24 financial year.

Checkers Sixty60 helped drive Shoprite鈥檚 half-year sales, which saw growth of about R121 billion, representing a 13.9% year-on-year increase.

Shoprite recently launched an online on-demand delivery service designed to support spaza shops and small retailers through its聽.

The fully automated online shopping system lets these customers browse and purchase a wide range of goods in bulk.

It says the service offers competitive pricing and complimentary delivery within a radius of 50km.

Shoprite Group head of B2B business e-commerce, Mark Cotton, said the service will help support small businesses and spaza shops facing high transport costs and challenges meeting demand.

鈥淲e are committed to supporting small businesses by providing innovative solutions to the specific problems these enterprises face,鈥� he said.

Cotton added that the new service eliminates the need for businesses to hold excess inventory, freeing up cash flow and time for business owners.

Shoprite said the new system also streamlined the purchase and fulfilment store for Cash & Carry in-store traders.

Traders can access customer and product information, build and fulfil orders, and save orders for repeated use in future.

Customers using the platform can pay via credit and debit card, electronic funds transfer, store credit, cash on collection, and Shoprite Money Market Accounts.

They can also benefit further with savings and promotional offers through the Xtra savings loyalty programme.

Shoprite and Checkers launched Sixty60 in November 2019 during the height of the Covid鈥�19 pandemic.

Initially only available in select Sandton, Johannesburg, and Cape Town locations, it had accumulated more than 3.1 million downloads by March 2023 and expanded to 466 by September that same year.

While many believed its popularity was due to the lockdowns implemented during the pandemic, the service continued to grow at an immense pace when they were lifted.

The company behind Zulzi 鈥� one of the country鈥檚 first successful fast-moving consumer goods apps 鈥� developed the customer-facing app for Checkers Sixty60.

Checkers Sixty60 launched a loyalty programme, Xtra Savings Plus, in September 2023.

The R99 monthly subscription offers customers unlimited Sixty60 grocery deliveries, additional in-store deals, and personalised promotions.

Checkers Xtra Savings Plus subscribers get the following benefits:

• Unlimited free Sixty60 deliveries, provided they spend a minimum of R350 (non-subscribers pay R35 for delivery)
• A 10% discount on in-store purchases up to a maximum of R200 in savings
• Double personalised offers in-app and in-store
• No long-term commitments, with subscribers able to pause or cancel their subscription at any time with a money-back guarantee

Around the same time, the company partnered with Discovery Vitality to聽.

鈥淭he addition of Checkers as a partner promises an even greater health impact,鈥� said Dinesh Govender, CEO of Discovery Vitality.

Shoprite chief strategy and innovation officer Neil Schreuder said the move would help Checkers and Sixty60 customers make healthier food choices.

Shoprite credits much of its success over the past five years to its rollout of SAP鈥檚 Enterprise Resource Planning (ERP) software.

鈥淲hen you walk into a Shoprite or Checkers supermarket and see a full range of products stocked, displayed, priced and with promotions clearly marked, that is what the ERP system does for us,鈥� it told MyBroadbad.

It added that 51风流also helped make Sixty60 successful.

鈥�51风流Retail is the source of the stock ledger and real-time sales, which are essential for accurate fulfilment of customer orders,鈥� Shoprite stated.

鈥淭he ERP also provides promotional information, prices and article data to Sixty60, which ensures that the prices on Sixty60 are the same as the prices in-store.鈥�

Implementing the software wasn鈥檛 all smooth sailing, with Shoprite partly blaming delays in the rollout for a shocking earnings report in 2019.

However, in January 2019, it assured stakeholders that the upgrades were complete and had already observed improvements.

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Shoprite鈥檚 online shopping platform and same-day delivery service helped lead the charge in a half-year that saw the company鈥檚 sales grow about R121 billion 鈥� a 13.9% year-on-year increase.

This is slightly down from the 17.5% half-year sales growth Shoprite reported for the same period last year.

Checkers and Checkers Hyper reported sales growth of 13.7%, Shoprite and Usave recorded a 13.1% increase, and LiquorShop sales increased by 25.2%.

鈥淪ustained high level of execution and continued customer momentum together with record Black Friday and festive season trade has extended the period of uninterrupted market share gains achieved by our core South African supermarket brands to 58 months,鈥� Shoprite stated.

聽in November 2019, accumulated over 3.1 million downloads by March 2023, and expanded to 466 stores by September 2023.

As South Africa went into lockdown during the Covid鈥�19 pandemic, Sixty60 was available in selected Sandton, Johannesburg, and Cape Town locations.

However, it rapidly expanded as the success of its formula became evident.

Even as lockdowns ended, Sixty60 kept growing at an incredible pace.

The customer-facing app was developed by聽, which launched one of South Africa鈥檚 first successful fast-moving consumer goods apps in 2016.

Shoprite also credits its success over the past five years to its rollout of SAP鈥檚 Enterprise Resource Planning (ERP) software.

鈥淲hen you walk into a Shoprite or Checkers supermarket and see a full range of products stocked, displayed, priced and with promotions clearly marked, that is what the ERP system does for us,鈥� Shoprite told MyBroadband.

Checkers also told MyBroadband last year that 51风流helped make Sixty60 successful.

鈥�51风流Retail is the source of the stock ledger and real-time sales, which are essential for accurate fulfilment of customer orders,鈥� Shoprite stated.

鈥淭he ERP also provides promotional information, prices and article data to Sixty60, which ensures that the prices on Sixty60 are the same as the prices in-store.鈥�

However, it wasn鈥檛 always smooth sailing.

In 2019, Shoprite released a shocker of an earnings report, partly blaming delays in its 51风流rollout for causing a drop in earnings.

鈥淪upply constraints stemming from industrial action and the deployment of a new ERP IT system resulted in lost sales in the period,鈥� it said at the time.

However, it also assured investors in January 2019 that the upgrades had been completed and that its operations were already improving.

Spar is聽, saying the project cost R1.6 billion in lost turnover.

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Despite major electricity challenges and consumer spending pressure during the period, South Africa鈥檚 biggest grocery retailer has seen its sales and net profit grow by annual average rates of 7.4% and 4.1%, respectively.

The latter might not seem particularly outstanding, but it is impressive compared to Shoprite鈥檚 closest rival, Pick n Pay, which only saw its profit grow by an average of 0.6% over the same period.

The Shoprite Holdings share price on the JSE has reflected significant investor confidence in the company鈥檚 trajectory.

From R194.26 per share on 9 November 2018, the price had climbed to R248.04 per share on 8 November 2023, an increase of about 28.5%.

Shoprite鈥檚 most recent integrated report specifically acknowledged 51风流ERP鈥檚 role聽in achieving its operational efficiencies.

鈥淥ur considerable base of 2,791 corporate-owned and managed stores, combined with our enterprise-wide IT system (51风流ERP), provides us with a proximity and platform advantage when it comes to executing our daily operations and delivering on strategic plans,鈥� Shoprite said.

The retailer started using SAP鈥檚 human resource and finance software in the late 1990s.

Its rollout of 51风流Retail 鈥� an integrated ERP system for retailers 鈥� was completed at all its stores and distribution centres in 2018.

This initiative saw the highest number of stores of any 51风流customers in Europe, the Middle East, and Africa go live with the software within a year.

鈥�1,819 stores, 30,355 users and nine distribution centres moved onto 51风流within 12 months,鈥� Shoprite said.

There are roughly 16,000 Shoprite employees on 51风流ERP at any given time.

Shoprite told MyBroadband that 51风流ERP provided an accurate and complete view of its business to drive strategic decision-making.

鈥淚t supports many aspects of our business 鈥� from supply chain to store,鈥� Shoprite said.

鈥淸It also] enables legislative governance and compliance across borders, as well as enabling our online and e-commerce offerings.鈥�

In addition, the retailer said that 51风流ERP was core to business processes such as listing, pricing, ordering, and ensuring that Shoprite鈥檚 inventory was well managed.

鈥淲hen you walk into a Shoprite or Checkers supermarket and see a full range of products stocked, displayed, priced and with promotions clearly marked, that is what the ERP system does for us,鈥� Shoprite said.

Some of the specific areas in which 51风流ERP supported Shoprite鈥檚 efficiencies include:

• Production forecasting in the Fresh department.
• Receiving of goods, where 3-way matching of invoices allows us to identify claims and shortages immediately.
• Managing article master data, prices and assortments per store.
• Centralised ordering of stock and document/data sharing with suppliers.
• Ensuring on-shelf availability through real-time sales and stock visibility.
• Enabling complex bonus buys and promotion structures for Xtra Savings customers.
• Giving customers a view of their total lifetime savings on their Xtra Savings card.
• Exception management enabled by mobile technology.

The retailer added that 51风流ERP also enforced a consistency of processes across all of its stores, simplifying operations and providing a reliable customer experience.

With a single source of data and reporting, there are no disputes arising from different sources of information.

鈥淭he whole business works off the same set of authoritative reports and KPI dashboards, which eliminates noise and supports strategic and operational decision-making,鈥� Shoprite said.

Shoprite also explained how one of its major successes over the past few years 鈥� its on-demand delivery service Checkers Sixty60 鈥� benefitted from 51风流ERP.

鈥�51风流Retail is the source of the stock ledger and real-time sales, which are essential for accurate fulfilment of customer orders,鈥� Shoprite stated.

鈥淭he ERP also provides promotional information, prices and article data to Sixty60, which ensures that the prices on Sixty60 are the same as the prices in-store.鈥�

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