Technology · June 22, 2022

Makro owner makes large grocery deliveries in South Africa – and that has a distinct advantage

Massmart has announced plans to expand its OneCart online marketplace in the coming months as part of a growing push into the internet space.

The owner of Makro and Game acquired an 87.5% stake in on-demand multi-retailer marketplace OneCart in late 2021, with the platform reporting over 200% growth in gross merchandise value (GMV).

OneCart is unique in the South African region as it allows customers to shop over 20 product categories from up to 12 leading retailers in one transaction and delivery, hence ‘one shopping cart’.

“The platform not only acts as an alternative consumer channel for some of the country’s most established brands, but is also the premier direct-to-consumer channel for smaller, emerging retailers and SMBs entering the online market,” said Lynton Peters, Founder and CEO of OneCart.

Peters said Massmart and OneCart are now expanding their partnership, and by the end of 2022, OneCart plans to double the number of Massmart stores available on the app. This expansion includes the addition of the Crown Mines, Carnival, and Wonderboom Stores macro to the app this month, while select Builders Stores will be added in July.

Currently, OneCart offers customers access to 28 Game and 12 Macro stores, allowing them to shop over 10,000 products across multiple categories including pantry, liquor, toys, baby products and small appliances. These orders are delivered within an hour or in a time slot chosen by the customer.

“We are very pleased to be able to leverage OneCart through this mutual benefit at Massmart given the high priority Massmart places on on-demand e-commerce at Game, Makro and Builders,” said Peters

Peters said that OneCart is Vision is to represent each retailer within a 10km radius of all their customers – ensure that the South African consumer is able to shop all their needs at their local store or mall on the platform.

“The OneCart business model is becoming more relevant to both retailers and consumers as convenience and time become new currencies. As retailers look for new growth opportunities and access to new customers, having a fast and affordable online presence is invaluable,” he said.

Peters said consumers love the additional options that come from using a multi-retailer platform that serves as a one-stop shop without the hassle of downloading multiple standalone apps.

“A typical OneCart order could easily include a diverse product selection that includes your weekly or monthly groceries, a case of wine or beer, a new drill for that impromptu home improvement project, beauty products, and diapers and baby food,” he said.

contest

OneCart is facing stiff competition from several other delivery services in South Africa that are already gaining a strong foothold.

Shoprite and Checkers pioneered on-demand delivery during the Covid-19 pandemic and lockdown and currently command 75% of the market share in this segment.

Meanwhile, Woolworths is also increasing its online and app delivery presence by expanding its Woolies Dash services to additional stores and regions in South Africa.

A 2022 Pick n Pay strategy document outlined the importance of the burgeoning market, noting that while online grocery sales in South Africa are still in the early stages of growth, this segment is growing rapidly.

Online shopping penetration in South Africa is around 1.1% but is expected to more than double to 2.6% over the next five years, it said.

While the number seems small given South Africa’s total food retail market is expected to reach R855 billion over the same period, this represents sales of over R22 billion that all major retailers want a piece of.


Read: Online Shopping Shootout: Woolworths vs. Pick ‘n Pay vs. Checkers