Shoprite acquires new fuel-efficient trucks, Pick n Pay reveals name of new middle-market brand

SOUTH AFRICA – Giant retailer Shoprite, has beefed up its logistic operations with acquisition of more than 100 of fuel-efficient trucks dubbed Scania Euro V trucks.

The trucks, according to the retailer have a proven fuel saving of around 10% along with lower emissions, forming part of the group’s commitment to reduce its environmental impact.

“Operational and supply chain efficiency plays a critical role in ensuring that the Group remains Africa’s most affordable and accessible retailer while reducing our environmental impact.

“We are relentless in our efforts to improve efficiencies in our supply chain as these measures are key to extending our customers’ spending abilities,” explains Andrew Havinga, chief Supply chain officer for the Group.

These efforts include changing to more fuel-efficient trucks and installing solar PV on trailers, as these trucks can be switched off while the refrigeration and tailgate lift continues to run on solar power.

“By further increasing the energy efficiency of our trucks and training our drivers on how to reduce fuel consumption, we are able to lower the comparative impact of the distance our fleet travels every year,” Havinga continues.

During the 2020/2021 financial year, the group’s fleet travelled close to 90 million km and delivered more than 350 million cases of products to its stores.

It currently owns 903 trucks and 1 360 trailers, of which 928 are fitted with solar panels, and it will be growing its fleet of fuel-efficient Euro V trucks annually with an additional 140 units planned by the end of 2023.

Meanwhile, competitor retailer Pick n Pay has officially renamed its “middle market” retail chain to Pick n Pay QualiSave, which was provisionally named Pick n Pay Red when it was launched in May.

The new store is aimed at providing South Africa’s middle-income market consumers with lower-priced quality products.

Pick n Pay QualiSave brand is part of the retailer’s strategy to split its stores into two brands, with the original Pick n Pay serving more affluent customers. The group will convert about 40% of its Pick n Pay stores which is 160 outlets into QualiSave outlets.

The new Pick n Pay QualiSave stores will offer customers a range of about 8,000 products, much less than a traditional Pick n Pay store of about 18 000 products.

Its emphasis is on “unbeatable meat, fresh produce and bakery, as well as a keen focus on essential commodities.”

The supermarket chain owner also owns the Boxer chain of supermarkets aimed at lower-income shoppers offering 3 000 SKUs.

All market segments are expected to grow by 2026, but it’s the less affluent segment that is anticipated to add the most market value of approximately R140 billion (US$8.9 billion).

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