South Africa's online grocery market is changing as retailers focus less on speedy deliveries and more on creating seamless shopping experiences that make browsing almost unnecessary. For years, companies have competed on one-hour delivery and digital expansion, but now they are confident that AI will be the next battleground.
Shoprite Holdings Ltd., the continent's biggest grocer, has strengthened its dominance in online groceries via its Checkers Sixty60 service. The division posted 48% growth in fiscal 2025. Competitor Pick n Pay Stores Ltd. seeks an advantage by substituting the traditional search bar with a straightforward query.
Using Google's Gemini AI, the tool can propose recipes, offer alternatives, personalize suggestions based on past orders and spending limits, and directly place items into the shopping cart.
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Enrico Ferigolli, the head of Pick n Pay's online business, said, "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."
This innovation represents a shift away from search-based buying toward conversational shopping, with businesses seeking to minimize the effort involved in buying groceries digitally. For Pick n Pay, releasing Penny goes beyond simply adding a new digital tool. It is part of CEO Sean Summers' wider strategy to turn around the retailer following a prolonged period of poor results in its main supermarket operations.
Summers, who came back to head the firm in 2023, has focused on rebuilding Pick n Pay's image for fresh produce and strengthening its digital infrastructure. Though the company delayed its profitability goal for the core supermarket division by one year to fiscal 2029, it keeps investing in tech to enhance its competitive standing.
The broader grocery battle is expected to shift toward AI-powered, frictionless shopping experiences. Pick n Pay is betting that conversation-led shopping can help win back customers who left for the convenience of Checkers Sixty60.
Pick n Pay has faced significant headwinds in recent years, losing ground to Shoprite's rapid delivery service and struggling with declining sales in its core supermarkets. Summers' turnaround plan includes refreshing the retailer's fresh produce reputation and upgrading its digital backbone to support innovations like Penny. The introduction of Penny is the latest step in a long-term recovery strategy that aims to make online shopping more intuitive and regain customer loyalty.
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