Retailer Pick n Pay has announced plans to participate in Shoprite and Woolworths in three major market segments with the launch of “Project Red”.

In a presentation of the strategy to investors on Tuesday (May 17th), Pick n Pay said its main store brand is currently competing in three different consumer markets – less affluent, medium and more affluent.

Customer feedback has shown that this strategy has led to inconsistent product offerings, service levels and store experience – something that the retailer now wants to change.

In a changing market, Pick n Pay will use its discount brand Boxer to compete in a less affluent market – a segment where it traditionally competes with Shoprite – while tried and trusted Pick n Pay stores will shift to a more affluent market dominated by Woolworths. , and more recently Checkers FreshX stores.

This will allow the Pick n Pay: Project Red brand to compete in the mid-market with stores such as Checkers and Spar.

“After nearly a year of customer research with more than 7,000 customer interviews the group will reconsider its relationship with the Pick n Pay customer. Pick n Pay will be organized into two brands designed for customers, each of which is designed to meet the specific needs of customers, “- said in a statement.

A new value proposition for customers is now being tested, but key elements include:

  • Project Red stores will be organized to provide low prices and high quality. They will have an assortment of about 8,000 storage units, with a focus on essentials, fresh strong supply and excellent service.
  • Pick n Pay stores offer a wide range and focus on quality, innovation and freshness. These stores will have an assortment of around 18,000 SKUs, giving customers great value associated with the best quality.

Project Red vs. Pick n Pay

Pick n Pay’s Project Red aims to cover a wider range of products with a focus on fresh produce and products. It will pursue a strategy of lower prices by picking up essentials aimed at the mid-market.

The range will include fruits and vegetables, fresh and frozen meat, cold drinks, bakery. The key differences in these stores will be the voluminous offerings and the larger space set aside for mass displays, as well as the strong drive for promotional prices to stay competitive.

Traditional Pick n Pay branding will move to a store of a more “experimental” type, the group said.

The updated Pick n Pay stores will feature fresh offerings, top-quality cheeses and wines, bakeries and a variety of products.

The group wants these stores to become major for selling meat and poultry and providing specialty products, becoming a key brand for the group.

Boxer shops

Although the focus is on the middle and upper markets, Pick n Pay says it is the lower market that offers some of the greatest opportunities for the group. All market segments are expected to grow by 2026, but this is a less affluent segment that is expected to add the highest market value of around Rs 140 billion.

Pick n Pay has a market share of 16% – but only 11% in the less affluent segment. This provides many opportunities for potential growth, the report said.

To that end, Pick n Pay has said it wants to expand its Boxer stores in the country and plans to add 200 stores over the next three years. The group currently has 380 Boxer stores.

It will also invest significant resources in its supply chain network to support this deployment, as well as improve its system developments in supply chain planning. The group hopes to double Boxer sales by fiscal year 2026, and wants overall market share growth of 3 percentage points to 19%.

Read: Pick n Pay Product Delivery Service Grows 300%

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