Pick n Pay’s highly touted online shopping division has seen its explosive growth momentum significantly dampen, according to the retailer’s latest trading statement for the half-year period ended 31 August 2025. While the sector remains a key growth engine for the South African retailer, the recent performance figures reveal a sharp deceleration compared to previous years.

For the 26 weeks ending 31 August 2025 (H1 FY26), Pick n Pay reported online sales growth of 34.4%. This growth was driven by continued expansion across its main digital channels: the proprietary Pick n Pay asap! on-demand delivery service and Pick n Pay groceries offered through the Mr D app.

However, this 34.4% increase marks a significant loss of steam, as the retailer noted the growth rate has nearly halved year-over-year. During the equivalent period in 2024, Pick n Pay recorded online sales growth of 60.6%. This deceleration follows a period of hyper-growth, including a reported 74.4% online sales increase between its 2023 and 2024 financial years, and overall online retail sales growth of 48.7% in FY25, with on-demand specifically growing at 60%.

The Competitive Landscape and Market Dominance

The slowdown occurs amidst fierce competition in the South African grocery delivery market, a segment where Pick n Pay’s main rival, Checkers Sixty60, has firmly established market dominance.

According to a 2025 World Wide Worx consumer survey, Checkers Sixty60 is significantly more popular among South African shoppers than Pick n Pay asap! and Woolies Dash. Of the surveyed participants, 16% said they most frequently use the Checkers platform, compared to just 8% for Pick n Pay asap!. World Wide Worx CEO Arthur Goldstuck observed that Sixty60 operates at “double the rate of Pick n Pay as well as of Woolworths,” emphasising the substantial lead Shoprite built through strategy and timing. This market performance is reflected in Shoprite’s figures, which reported a digital sales increase through Sixty60 of 47.1% in the interim FY2025 results.

Despite being eclipsed in customer frequency rates, Pick n Pay has been aggressively investing in its digital ecosystem, leading to key operational improvements and consumer benefits.

Operational Gains and Technology Investments

Pick n Pay had previously reported its online business was profitable on a fully costed basis in its FY25 results, reflecting scale gains. The group has pursued a strategy focused on using technology and streamlined operations to drive growth.

Key technological and logistical shifts include:

• AI and App Relaunch: The Pick n Pay asap! app was relaunched in October 2023 with improved functionality, incorporating Artificial Intelligence (AI) for features like AI Search, Alternatives, and Personalisation to enhance the shopping experience. The new ‘Pick n Pay asap! and Smart Shopper’ app consolidates on-demand delivery, Smart Shopper loyalty, and value-added services onto a single, scalable platform.

• Logistics Transformation: The retailer restructured its logistics fleet, achieving a remarkable operational shift where 87% of deliveries are now handled by motorbike, compared to three months prior when up to 40% of the fleet comprised cars. This transition was instrumental in reducing the average delivery time by a significant 24% in the first 11 weeks of FY26.

• Customer Experience Focus: Improvements have led to a 24% boost in overall customer satisfaction, according to earlier reports. Furthermore, the new app features a pre-authorisation payment system, meaning customers are charged only for delivered items, eliminating the reliance on wallet refunds.

• Pricing Advantage: Notably, competitive comparisons indicate Pick n Pay asap! maintains a strong pricing position in the market. A recent test showed Pick n Pay asap! offered the best prices compared to Checkers, Spar, and Woolworths for a test basket of goods. Pick n Pay asap! was found to be R21.99 cheaper than Checkers and R60.99 cheaper than the most expensive rival, Woolworths Dash. The test also highlighted Pick n Pay being the least expensive for milk, chocolate, and cheese (even providing a larger block of cheese than competitors).

Despite the growth rate cooling, the continued expansion of digital retail remains central to Pick n Pay’s broader recovery plan.

Broader Financial Context

The moderate online growth figure sits within a period of broader stability for the group. For the 26 weeks ended 31 August 2025, Group turnover increased by 4.9%, with like-for-like sales up 4.7%. Pick n Pay South Africa like-for-like sales grew by 4.3%.

The group is currently undergoing a strategic overhaul aimed at restoring profitability after a “turbulent period”. The trading statement indicated that the expected headline loss for H1 FY26 is projected to be smaller than the previous year’s loss of -R803 million, driven by an improved Pick n Pay segment result, a strong performance from Boxer, and a significant positive swing in net funding interest. Boxer, which has been performing strongly, showed turnover growth of 13.9%.

The figures suggest that while Pick n Pay continues to grow its online sales volume ,supported by aggressive pricing and platform innovation , it faces a structural challenge in matching the accelerating pace and market entrenchment achieved by its competitor, Checkers Sixty60.