Pick n Pay said on Monday that its online business, made up mainly of its asap! on-demand delivery services and grocery delivery through Takealot’s Mr D, is now profitable on a “full costed basis”.

The retailer, which published its annual financial statements for the period ended 2 March 2025 on Monday, said its online sales have continued their “strong growth trajectory”, with online retail turnover in South Africa climbing by 48.7% over the 53-week reporting period (44.6% over the first 52 weeks).

“The scale gains achieved have resulted in the online business now being profitable on a fully costed basis. While online turnover growth was initially mostly driven by company-owned stores, asap! is now being increasingly adopted by franchisees, with triple-digit FY25 growth in franchise,” the retail group said.

“Pick n Pay’s online business continues to report ongoing improvements in key operational metrics, including picking and delivery time. The asap! technology has been completely re-platformed over the last 18 months and a new and upgraded asap! app was launched in April 2025.

“This app now integrates asap! with Smart Shopper and value-added services, providing customers with access to a state-of-the-art technology platform, as well as a host of new features that will further fuel its growth in FY26,” Pick n Pay said.

The online grocery delivery market has exploded since the Covid-19 pandemic. Pick n Pay rival Shoprite Holdings has stolen an early lead in the market with its Checkers Sixty60 platform. Other players in the highly contested market include Woolworths, with Woolies Dash, and Spar, with Spar2U.