Makro owner is making a big grocery delivery push in South Africa – and it has a key benefit

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

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

OneCart is unique in the South African space in that it allows customers to purchase over 20 product categories from up to 12 major retailers in a single transaction and delivery, hence “one shopping cart “.

“Not only does the platform act as an alternative customer channel for some of the country’s most established brands, it is also the first direct-to-consumer channel for emerging small 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 Makro Crown Mines, Carnival, and Wonderboom stores being added to the app this month, while some Builders stores will be added in July.

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

“We are really excited to be able to leverage OneCart for mutual benefit at Massmart through this expansion, given the high priority Massmart has placed on on-demand e-commerce at Game, Makro and Builders,” Peters said.

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

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“OneCart’s business model is becoming increasingly relevant to retailers and consumers alike as convenience and time become new currencies. As retailers seek new growth opportunities and access new customers, an online presence fast and inexpensive line is invaluable,” he said.

Peters said consumers appreciate the additional options offered by using a multi-retailer platform that serves as a one-stop shop, without having to download multiple standalone apps.

“A typical OneCart order could easily involve a diverse product selection including your weekly or monthly groceries, a case of wine or beer, a new drill for that spontaneous DIY project, beauty products, diapers and baby food. “, did he declare.

Competition

OneCart faces fierce competition from several other delivery services in South Africa that have already established a solid footing.

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

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Woolworths, meanwhile, is also increasing its presence in the online and app delivery space by expanding its Woolies Dash services to more stores and regions in South Africa.

A Pick n Pay 2022 strategy document highlighted the importance of the booming 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, he said.

Although the figure seems small, with the entire grocery retail market in South Africa expected to reach R855 billion over the same period, this represents over R22 billion in sales of which all big retailers will want a share.


Read: Shootout over online shopping: Woolworths vs Pick ‘n Pay vs Checkers

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