Pick n Pay is bringing artificial intelligence deeper into its supermarket operations as South Africa’s online grocery market becomes an increasingly important part of its business, with a new technology rollout targeting faster order fulfilment across more than 720 stores.

The retailer’s decision follows a pilot of Canadian technology provider OrderGrid’s platform that reduced the average time employees needed to pick online orders by approximately 30%.

The improvement could help Pick n Pay handle larger customer baskets more efficiently as demand for its online grocery service continues to expand.

The rollout also comes after Pick n Pay reported 35.4% growth in online sales during the 26 weeks ended August 30, although the group has not disclosed the channel’s total revenue.

Online sales put pressure on store operations

The technology will support asap!, Pick n Pay’s online grocery service, by bringing inventory management, demand forecasting, order processing and in-store task coordination into a connected platform.

Its practical purpose is to help employees identify empty shelves, reduce product shortages and locate items more efficiently when assembling customer orders. These improvements matter particularly when shoppers purchase multiple products in a single transaction.

Enrico Ferigolli, Pick n Pay’s retail executive for omnichannel, said the OrderGrid tools would help employees pick online orders more efficiently, particularly larger baskets.

The retailer has not disclosed the number of stores involved in the initial pilot or the financial value of its agreement with Toronto-based OrderGrid.

AI becomes part of the customer experience

The latest deployment builds on technology already operating within Pick n Pay’s stores, including computer vision systems that identify empty shelves and machine learning tools that help determine the most efficient routes for employees picking online orders.

Beyond store operations, the retailer has also been expanding the artificial intelligence capabilities available to customers through its asap! application.

One addition is Penny, an AI shopping assistant that allows customers to discover products and assemble shopping baskets through text, voice and image-based interactions.

Pick n Pay has also introduced Smart Shopper Pro, a subscription service priced at R99($5.94) a month, positioning its loyalty offering against competing paid supermarket membership products, including Checkers’ Xtra Savings Plus.

Two-year technology overhaul reaches final stage

The OrderGrid deployment marks the final stage of a two-year technology platform overhaul, according to Pick n Pay.

Founded in 1967, the retailer operates supermarkets and other grocery formats across Southern Africa.

Its latest investment reflects an effort to improve the productivity of its existing store network while strengthening the infrastructure supporting online sales.

Although Pick n Pay has not revealed the financial terms of the OrderGrid agreement, the pilot’s reported reduction in picking time provides an indication of the operational improvement the retailer expects from the wider deployment.

For the group, the challenge will be translating faster order preparation and better inventory visibility into a more efficient online grocery operation as digital sales continue to grow.