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Massmart to chase down opportunity in SA’s building and DIY markets

By , Portals editor
Africa , 28 Jun 2022

Global retailer Massmart said its December 2021 acquisition of grocery delivery service OneCart has empowered it with an additional retail marketplace to leverage at scale – specifically in the fast-growing on-demand FMCG online segment, and the intention is to now focus on South Africa’s sizeable building and home improvement market segments.

These market segments are traditionally non-FMCG, but according to Massmart, they remain relevant to customers’ on-demand needs.

According to Massmart, after it acquired an 87.5% stake in on-demand multi-retailer marketplace, OneCart, in late 2021, the platform has experienced exponential Gross Merchandise Value (GMV) growth of over 200%.

“Not only does the platform act as an alternative customer channel for some of the country’s most established brands, it is also the first direct-to-consumer channel for smaller, emerging retailers and SME’s entering the online market,” says Lynton Peters, Founder and CEO of OneCart.

OneCart plans to double the number of Massmart stores available on the app by the end of this year.

This expansion includes adding the Makro Crown Mines, Carnival and Wonderboom stores to the app this month, whilst selected Builders stores will be added during July.

Currently, OneCart offers customers’ access to 28 Game and 12 Makro stores.

“We are really pleased to be able to leverage OneCart for mutual benefit at Massmart through this expansion, given the high priority that Massmart has placed on on-demand eCommerce at Game, Makro and Builders,” says Peters.

Peters notes that OneCart’s vision is to represent every retailer within a 10km radius of all their customers – ensuring the South African consumer is able to shop for all their needs from their local store or shopping centre on the platform. With this in mind, Peters reinforces that OneCart continues to focus on increasing the number of products and retailers available on the app.

“OneCart’s business model is becoming increasingly relevant for both retailers and consumers as convenience and time become new currencies. As retailers seek new growth opportunities and access to new customers, a fast, low-cost online presence is invaluable,” he says.

Speaking to the platform’s customer value proposition, Peters explains that consumers love the optionality that comes from using a multi-retailer platform that serves as a one-stop-shop, without the hassle of having to download multiple, stand-alone apps.

“A typical OneCart order could easily involve a diverse product selection that includes your weekly or monthly groceries, a case of wine or beer, a new drill for that spontaneous DIY project, beauty products, and nappies and baby food,” he concludes.

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