Unlocking the Power of Brick-and-Mortar: Checkers Sixty60’s Rapid Expansion

Neil Schreuder, Shoprite’s chief of strategy and innovation, has revealed the key to Checkers Sixty60’s success: its extensive distribution and shop network, combined with last-mile efficiency.

Rapid Growth and Explosive Demand

Launched in 2019, Checkers Sixty60 quickly became the dominant grocery delivery service in South Africa, capitalizing on the pandemic-induced increase in demand for delivery services. Volumes skyrocketed in 2020 as Checkers rapidly expanded its presence throughout the country to meet the growing demand.

According to Shoprite’s latest annual report, Checkers Sixty60 is now available in 539 stores, a 73-store increase year-on-year. This significant expansion has provided one-hour delivery access to over 80% of the addressable online market in South Africa.

Taking Delivery to New Heights

Checkers Sixty60 has revolutionized its delivery capacity with the establishment of ‘dark stores’, allowing for faster and more efficient delivery of products to customers. Additionally, the Checkers Sixty60 app has achieved 5.2 million downloads since launch and 1.4 million downloads in the last year alone.

With a new fleet of Hyper delivery vans, Checkers Sixty60’s product offering has expanded beyond groceries to include camping and outdoor gear, small appliances, baby products, toys, kitchen and home electronics, gardening and pool equipment.

These new additions have further enhanced the delivery experience for customers, offering convenience and a broader range of products than ever before.

Enhancing User Experience and Security

Last month, Checkers rolled out the new Sixty60 app to millions of shoppers nationwide, following months of testing. The new app boasts a refined layout and user interface, as well as multi-factor authentication to enhance security.

Some exciting new features of the app include precision delivery of products from selected Checkers Hyper stores, offering even more convenience and flexibility for customers. This is in addition to the existing wide range of groceries and essentials, ensuring customers have everything they need at their fingertips.

Exclusive to Cape Town residents, Checkers Sixty60 has introduced 2,500 additional premium products for delivery, including leading brands such as Apple, Dyson, Thule, Smeg, Samsung, and Harmon Kardon, with many more to come.

The Secret Weapon Behind Checkers Sixty60’s Success

Neil Schreuder, Shoprite’s chief of strategy and innovation, explained that Checkers Sixty60’s biggest advantages are its extensive distribution and shop network, combined with last-mile efficiency. He emphasized that, unlike their competitors, Shoprite’s brick-and-mortar footprint allows for efficient in-store picking, providing a direct link to customers’ needs.

“Ten years ago, brick-and-mortar retailers thought their large real estate and footprint would be their Achilles heel,” he said. “With a much smaller footprint and centralised distribution centres, online players seemed to have an advantage.”

However, Schreuder asserted that this narrative has changed. “Checkers has weaponised its store footprint and proximity to customers.” He further highlighted that 80% of South Africans live within five kilometres of one of their supermarkets, which is a significant asset in delivering products efficiently and affordably.

With such a robust supply chain, which supplies millions of products to 3,000 stores daily, the “last five-kilometre” delivery to the customer’s door becomes the decisive factor. “We do the last five kilometres really efficiently. We can do it faster and more affordably than normal online retailers,” Schreuder concluded.

He stressed that competing e-commerce players, such as Temu and Shein, cannot match the service level of Sixty60. This is the exact reason why an extensive brick-and-mortar store footprint, with in-store picking, is now being regarded as a powerful weapon in the e-commerce war.

Such a strategy has translated to an impressive average delivery time of 33 minutes, a service level that no customer can afford to abandon.

Ultimately, Checkers Sixty60’s rapid growth and success are undoubtedly founded on a combination of technological advancements, strategic partnerships, and innovative marketing strategies – all of which promise an exciting and transformative future for online shopping in South Africa.