<\/p>\n
South Africa\u2019s 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.<\/p>\n
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.<\/p>\n
Instead of searching through thousands of products, shoppers are being encouraged to simply ask for what they need. The battle is fierce.<\/p>\n
Read\/listen:<\/p>\n
Shoprite Holdings Ltd, Africa\u2019s largest supermarket chain, has steadily cemented its lead in the country\u2019s online grocery market through its Checkers Sixty60 platform.<\/p>\n
It reported 48% growth in that unit in fiscal 2025, with digital revenue reaching R18.9 billion ($1.2 billion) \u2013 almost 9% of its local supermarket sales and 10 times larger than in 2021.<\/p>\n
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\nRival Pick n Pay Stores Ltd is now trying to gain an edge by replacing the search bar with a simple question.<\/p>\n<\/blockquote>\n
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.<\/p>\n
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\u00a0Enrico Ferigolli, who heads Pick n Pay\u2019s online business.<\/p>\n
Powered by Google\u2019s Gemini AI models, the assistant can recommend recipes, suggest substitutions, tailor recommendations to customers\u2019 previous purchases and budgets, and add products directly to their carts.<\/p>\n
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.<\/p>\n
For Pick n Pay, the launch is about more than introducing a new digital feature. It forms part of chief executive officer Sean Summers\u2019 broader effort to revive the retailer after years of weak performance in its core supermarket business.<\/p>\n
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\nThe stock has lost 16% so far this year, compared to Shoprite\u2019s 7.8% rise.<\/p>\n<\/blockquote>\n
Summers, who returned to lead the company in 2023, has been working to restore Pick n Pay\u2019s reputation for fresh food while rebuilding the retailer\u2019s digital capabilities.<\/p>\n
\nRead:<\/p>\n
Summers to stick around as Pick n Pay plays the long game<\/div>\n\u2018We\u2019re winning back customers one at a time\u2019 \u2013 Pick n Pay\u2019s Sean Summers<\/div>\n<\/div>\nAlthough 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.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg<\/p>\n<\/p><\/div>\n
#battleground #SAs #grocery #war<\/p>\n","protected":false},"excerpt":{"rendered":"
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