Shoprite had put the idea of an online grocery store on ice until consumers showed interest, the owner of Checkers, House&Home and OK Furniture stores said.
Shoprite responded to criticism from Arthur Goldstuck of World Wide Worx, an independent technology research organisation, that the retailer had lagged behind its competitors in online retail.
“The worldwide demand for online grocery shopping remains low and the group is of the opinion that few, if any, of these companies that offer the service are profitable,” Shoprite said.
The retailer said it did offer online shopping through its House&Home and OK Furniture stores.
Goldstuck had warned that with the entrance of Walmart through its acquisition of a controlling stake in Massmart, retailers such as Shoprite would fall behind their rivals.
“Even though Massmart has not started an online grocery store, once it does, it would bring serious competition for other retailers. Shoprite must catch a wake up and start an online store,” he said.
Massmart offers online shopping through its Makro stores, which offer a wide range of items including fresh meat and its Dion Wired stores which offes electronic devices.
Shoprite spokeswoman Sarita van Wyk said: “Shoprite possesses the capability and technology to switch on online grocery shopping at any time. However, we believe that online information gathering and the use of financial and other services, an area in which the group is most likely a market leader, will be the area with the fastest growth.”
Pick n Pay and Woolworths have offered online shopping for more than a decade now.
Goldstuck said Shoprite might think that an online store was unnecessary because it catered for the mass market, however, it was the very same market that was showing growth in the use of internet.
He said there was high demand for internet access and online shopping, and that this would likely intensify next year. “According to our digital participation curve research, the use of online shopping will accelerate next year and for the rest of the decade for that matter,” Goldstuck said.
He said this would give consumers the power to decide where they wanted to shop and how they wanted to do it.
Shoprite insisted that it was the first retailer in the country that had a specialised facility for what was the precursor of online shopping, called Teleshopper Hotline. “This offered a service to customers for ordering products via telephone and fax. Due to logistical constraints and lack of interest from customers the division was closed down.”
In 2000, the retailer offered customers online grocery ordering with a two-hour turn-around time, and drive-through pick-up points at three pilot Checkers stores. However, the service was abandoned due to lack of interest.
Goldstuck said Shoprite had a Computicket online service but said the system encountered problems every time there was a big event. “Shoprite does not take the online shopping seriously.”
Shoprite shares closed 2.6 percent up at R165 in Friday.