Massmart has announced that it plans to expand its OneCart online marketplace in the coming months as part of its growing push into the internet space.
At the end of 2021, the owner of Makro and Game acquired an 87.5% stake in multi-retail marketplace OneCart, with gross merchandise value (GMV) up over 200%.
OneCart is unique in the South African space in that it allows shoppers to shop in more than 20 product categories from 12 top retailers in a single transaction and shipping, hence “one cart”.
“The platform not only acts as an alternative channel for some of the nation’s most established brands, but also serves as the first direct consumer channel for small, emerging retailers and SMEs entering the online marketplace,” said Linton Peters. founder and CEO of OneCart.
Peters said that Massmart and OneCart are currently expanding their partnership, with OneCart planning to double the number of Massmart stores available on the app by the end of 2022. This expansion includes the addition of Makro Crown Mines, Carnival and Wonderboom stores to the app this month, with individual Builders stores coming in July.
OneCart currently offers shoppers access to 28 Game Stores and 12 Macro Stores, allowing them to purchase over 10,000 items across a variety of categories including daily necessities, liquor, toys, baby products, and small appliances. These orders are delivered within one hour or at a specific time interval chosen by the customer.
“We are thrilled to be able to use OneCart for mutual benefit at Massmart with this extension, given the high priority Massmart is placing on-demand e-commerce across Game, Macro and Builders,” Peters said.
Peters said that OneCart The vision is to represent all retailers within a 10 km radius of all their customers. – Ensuring that the South African consumer can buy everything they need from a local store or mall on the platform.
“The OneCart business model is becoming increasingly relevant to both retailers and consumers as convenience and time become the new currencies. As retailers look for new opportunities to grow and access new customers, a fast, low-cost online presence is invaluable,” he said.
Peters said consumers love the added value that the multi-retailer platform provides, which serves as a one-stop shop without having to download multiple offline apps.
“A typical OneCart order could easily include a varied selection of groceries, including groceries for a week or a month, a case of wine or beer, a new drill for that spontaneous DIY project, beauty products, diapers and baby food,” he said.
OneCart is facing stiff competition from several other delivery services in South Africa that are already well established in the market.
Shoprite and Checkers have been pioneers in on-demand delivery during the Covid-19 pandemic and lockdown and currently hold 75% market share in this segment.
In the meantime, Woolworths is also expanding its presence in the online and app delivery space by expanding its Woolies Dash service to more stores and regions in South Africa.
Pick n Pay’s 2022 strategy paper highlights the importance of the growing market, noting that while online food sales in South Africa are still in the early stages of growth, the segment is expanding rapidly.
Online shopping penetration in South Africa is approximately 1.1% but is expected to double to 2.6% over the next five years.
Although this figure seems small, as the entire food retail market in South Africa is projected to reach R855 billion over the same period, this represents over R22 billion in sales that all major retailers will want to receive.