AI becomes the next battleground in SA’s grocery war

South Africa’s online grocery battle is entering a new phase, where competition is no longer just about delivering groceries faster, but rather about making shopping itself almost disappear.

After years of racing to offer one-hour delivery and expand digital reach, retailers are increasingly betting that artificial intelligence (AI) will become the next front of the race.

Instead of searching through thousands of products, shoppers are being encouraged to simply ask for what they need. The battle is fierce.

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Shoprite Holdings Ltd, Africa’s largest supermarket chain, has steadily cemented its lead in the country’s online grocery market through its Checkers Sixty60 platform.

It reported 48% growth in that unit in fiscal 2025, with digital revenue reaching R18.9 billion ($1.2 billion) – almost 9% of its local supermarket sales and 10 times larger than in 2021.

Rival Pick n Pay Stores Ltd is now trying to gain an edge by replacing the search bar with a simple question.

Cape Town-based Pick n Pay on Thursday unveiled Penny, an AI-powered assistant embedded in its asap! delivery app that allows customers to shop using voice, text or photographs instead of manually browsing products.

Whether asking for ingredients for a recipe, uploading a handwritten shopping list or photographing the contents of a fridge, customers can describe what they need and Penny builds a basket using products available at their chosen store, said Enrico Ferigolli, who heads Pick n Pay’s online business.

Powered by Google’s Gemini AI models, the assistant can recommend recipes, suggest substitutions, tailor recommendations to customers’ previous purchases and budgets, and add products directly to their carts.

The technology marks a move from search-led shopping to conversation-led shopping, as retailers look for ways to reduce the friction involved in ordering groceries online.

For Pick n Pay, the launch is about more than introducing a new digital feature. It forms part of chief executive officer Sean Summers’ broader effort to revive the retailer after years of weak performance in its core supermarket business.

The stock has lost 16% so far this year, compared to Shoprite’s 7.8% rise.

Summers, who returned to lead the company in 2023, has been working to restore Pick n Pay’s reputation for fresh food while rebuilding the retailer’s digital capabilities.

Although it recently pushed its target for the core supermarket business to break even back by a year to fiscal 2029, it continues to invest in technology to strengthen its competitive position.

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