Food retailer Checkers is trialling an unlimited grocery delivery subscription service for R100 a month.
- The trial subscriptions among Sixty60 customers allow unlimited deliveries of Checkers purchases of R350 or more.
- If rolled out, an Xtra Savings Plus subscription will cost R149 a month and include a 10% in-store discount and personalized savings.
- The subscription model could help Checkers win customer loyalty and market share from competitors like Spar.
- Checkers was the first retailer to offer one-hour grocery delivery, followed by Pick n Pay, Woolworths and some Spar stores.
- Twenty percent of township shoppers mentioned Sixty60 as their top of mind delivery service in a recent survey.
- Delivery is unprofitable for most retailers due to high costs though Checkers does not disclose Sixty60’s financials.
- A report found that as retailers spend more on e-commerce, their profitability declines.
- However, Checkers may be banking on increased customer loyalty through the subscription.
- Checkers has expanded into other non-grocery markets under its “fail fast” strategy.
- It is the first retailer to offer bank accounts but lags Pick n Pay in apparel stores.