The SPAR group and McCarthy Online (MOL) will soon join forces to establish a new national online grocery shopping network.
MOL`s highly successful MegaShopper e-commerce model will be employed to offer customers on-line ordering and home delivery of over 10 000 products, including groceries, computers, furniture, toys, stationery and a whole range of consumer products.
Awarding the contract to MOL - renowned for its successful implementation of on-line motor retailing through its McCarthy Call-A-Car (CAC) initiative and turning it into the undisputed leader in on-line motor retailing in South Africa - allows the Spar supermarket chain group to enter a new era in e-commerce. With this joint initiative SPAR-MOL hope to acquire at least one percent of the current annual R40-billion grocery industry in South Africa.
At present three stores are trading on-line, but it is envisaged that this will be expanded to 10 stores before the Christmas season this year. Medium term plans are to expand the number of stores to over 50 by early 2001.
With more than 10 000 registered users, MegaShopper has for the past year offered on-line ordering and home delivery to Internet shoppers in Gauteng, Durban and Cape Town. The MegaShopper team will be responsible to implement SPAR`s on-line grocery shopping service. Added to that is MOL`s expertise with the McCarthy`s Call-A-Car concept which saw approximately 4896 vehicles retailed last year.
"We will implement the same clicks and mortar model in rolling out on-line grocery shopping for the SPAR group," says MOL Managing Director Lourens Botha. "It is a major vote of confidence in MegaShopper`s ability and experience to deliver an integrated e-commerce model," he adds.
SPAR Group Marketing Director Roelf Venter, says his company has gone through an extensive exercise to evaluate all the options available. "SPAR is an international franchise and as such has access to all the international experience and case studies in e-commerce.
"MegaShopper is a suitable partner because they have showed that it can be done successfully in South Africa. We hope to combine their forces with our substantial store network and build on our market advantage.
Through this initiative we expect substantial revenue to be generated over a three-year period.
Customers today are looking for convenience, value and the support of a trusted brand such as SPAR. The on-line world is a logical extension of our brand and we want to have a partner of substance such as MOL to assist us in this regard."
Venter says SPAR has entered into this venture because the store believes in customer care, convenience, quality service, innovation and to obtain the leading edge when it comes to on-line grocery shopping.
Shoppers will be able to complete shopping baskets on-line by accessing a database of grocery products. Once they have completed their order it will automatically be distributed to the relevant participating SPAR outlets for goods ordering and packing.
A delivery network will pick up the goods at store-level and deliver it to the customer`s specified address. The SPAR group has the added advantage of having existing world class distribution centres that will ensure accurate stock management that will be in line with customers` ordering patterns. This will add substance to this e-commerce offering.
International retail analysts have predicted for a long time that the future of on-line shopping will be a combination of physical stores and websites catering for the digital customer of tomorrow.
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