Commerce
The secret behind Shoprite’s Sixty60 success
The Shoprite Group has launched a digital business unit, ShopriteX, which is combining data science, technology and innovation with its operational strength to provide increasingly enhanced customer experiences.
Incubated over the past year, ShopriteX aims to create more personalised shopping experiences for customers.
ShopriteX already delivered two industry-leading innovations – Xtra Savings, South Africa’s fastest-growing rewards programme with 20 million members to date, and Checkers Sixty60 the first on-demand 60-minute supermarket grocery delivery service in South Africa.
“We are serious about being Africa’s most customer-centric retailer, and the launch of ShopriteX represents our investment in fit-for-the-future precision retail, which is increasingly digital and data-led,” says Pieter Engelbrecht, CEO of the Shoprite Group.
The launch is part of the Group’s strategy to grow its ecosystem of value for consumers and monetise new and diverse revenue streams.
At the ShopriteX offices above the new Checkers Hyper Brackenfell flagship store next to the Group’s home office, the division’s 250-strong team, including data science, e-commerce and personalisation experts, is working side by side with Shoprite’s IT team (combined a team of over 1 000 people) to create and implement new innovations.
The new offices are also home to the latest retail innovation, Checkers Rush, an automated, cashless “no queues, no checkout, no waiting” concept store, where employees can grab products and walk out. Using advanced AI camera technology to identify the products being taken off the shelves, Checkers Rush bills users’ bank cards upon exit.
This is one of the numerous digital innovations under development. “The next era of growth for us is about precision retailing. ShopriteX will use our rich customer data to supercharge a ‘Smarter Shoprite’ and ultimately fuse the best of digital with our operational strength across the continent,” Engelbrecht says.
Neil Schreuder, chief of strategy and innovation says: “Shoprite to the power of X represents the exponential growth opportunity when you combine the best of data, tech and talent with the scale of the Shoprite Group”.
This is evident in the response to Sixty60 and Xtra Savings:
- Sixty60 is South Africa’s number one grocery delivery app, having been downloaded more than 1.5 million times.
- Sixty60 delivered more than 1.5 million orders in under 30 minutes in the past year.
- It is operating nationwide from 240 stores which serve as micro-fulfilment centers.
- Sixty60 has created 2 870 new jobs.
- Sixty60’s drivers have travelled to the moon and back 40 times.
- Xtra Savings has signed on 20 million rewards members through 100% paperless sign up.
- Customers have saved R5.3bn in Xtra Savings in the past year.
- 750 million personalised offers were sent to Checkers customers in the past year.
Innovations such as Sixty60 and Xtra Savings have seen the team scoop up 17 innovation awards in the last year. Schreuder says the Group is just getting started: “Through a culture of innovation and startup-like pace, our teams are making grocery shopping more personalised for customers while removing friction from the retail experience.”
