Woolworths’ on-demand delivery service, Woolies Dash, has experienced a significant 71% increase in sales over the past year.
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To support this growth, the retailer plans to expand its network of ‘dark stores’ across the country. These dark stores, which are not open to the public, are specifically designed to fulfil online orders.
Woolworths launched its first dark store in the Cape Town CBD, serving the City Bowl and surrounding areas. According to Liz Hillock, Woolworths Director of Online & Mobile, ‘Investing in dark stores is a testament to our focus on creating a future-fit omnichannel offering that leverages and transforms existing assets to continuously improve our customer’s experience.’
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The Cape Town dark store has significantly improved product availability for online shoppers in the area.
Unlike traditional Woolies Dash orders, which are typically fulfilled in local Woolworths stores and require online orders to compete with in-store shoppers, the dark store provides a dedicated environment that prioritises online orders, enabling faster delivery.
Woolworths plans to roll out more dark stores nationwide in the near future. The company also reported that 95% of Woolies Dash orders are now delivered on time or earlier – a 10% improvement compared to the previous year.
Additionally, Woolies Dash has created 2 200 new jobs in the value chain over the past year and reduced paper waste by 38 tonnes through the use of smaller delivery bags.
Woolworths is not alone in seeing strong growth in its online grocery delivery service. Competitors have also reported impressive sales increases.
For the 52 weeks ending 30 June 2024, Checkers Sixty60 saw a 58.1% rise in online sales. In May, Checkers announced a beta test for an updated version of its Sixty60 app, which will offer over 10 000 Hyper products for same-day delivery within a 60-minute time slot.
Pick n Pay’s online sales grew by 74.4% for the year ending 25 February 2024, driven by enhancements to its Pick n Pay asap! platform and its partnership with Mr D, despite recording R3 billion in online sales.
Spar also reported a significant surge in its Spar2U delivery service, with online sales volumes increasing by 463% for the six months ending March 2024. Spar2U sites grew from 356 to 420 by the end of September 2023.
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