Online sales defy downturn

Cape Town - Retailers' internet sales are showing strong growth despite the economic downturn. Woolworths' internet shopping turnover has in fact grown faster than that of the group's physical stores.

Craig Ludwig, divisional director of general merchandising, declined to provide figures but said the group's online shopping was showing huge growth.

Pick n Pay's online sales have also risen strongly, and spokesperson Tamra Veley said "every month there are more than 2 000 new online registrations for home shopping".

Ludwig ascribed this to convenience for customers, but also to consumers having increased access to the internet. "We also see an increase in online orders from cellphones, but there is generally greater access to the internet."

According to Ludwig, Woolworths finds it cheaper to outsource the delivery service than to maintain its own delivery fleet.

"It's certainly more cost-effective. A good shopping portal requires a reliable delivery service. It was not a sustainable option for us to maintain our own fleet. We have a partnership with Niche Logistics, which does the deliveries. They are very flexible and efficient."

Niche Logistics is part of a Woolworths empowerment initiative and has 25 vehicles that deliver mainly to urban areas. They courier anything from Xboxes to clothing, but most of the online sales involve food.

According to Niche Logistics owner Deon Leminie, Woolworths sends through orders at midnight and shortly thereafter the instructions go to the drivers.

"Each driver is allocated a specific store," he said. "Most drivers already have a good relationship with their stores, as well as with the clients to whom they regularly deliver."

- Sake24.com

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