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Pepkor's Paxi parcel service boasts impressive growth

Paxi, Pepkor's counter-to-counter parcel service that allows customers to send, collect and return parcels, has experienced exceptional growth since its launch in 2018] by leveraging the retail group's extensive store footprint.

Pepkor's Paxi parcel service boasts impressive growth

Paxi has moved more than 1.9 million parcels during the year – a 120% growth on last year.

The service now has over 2,100 parcel service points countrywide through the Pep store network and has further expanded its offering to Shoe City outlets, growing the total number of Paxi parcel points to 2,230. The vision is for parcels to be sent and collected across the Pepkor network of more than 5,000 stores.

“Pepkor’s value proposition is to provide customers with easy access to products and services as close as possible to their homes. By leveraging Pep’s footprint, together with technology, Paxi delivers on this promise,” says CEO of Pepkor, Leon Lourens. “Paxi is just one of the many innovations and ways Pepkor uses technology and its footprint to provide our customers with solutions to make their lives better as we offer them a range of products and services, such as money transfers, airtime purchases and the ability to pay monthly household bills.”

Paxi's technology platform enables customers to be kept up to date with the status of their parcels via SMS, the Paxi bot and the Paxi website. Customers can choose between two bag sizes and also have the choice of a standard service or an express service. Pricing ranges between R59.95 to R119.95. At R59.95, it remains the most affordable price for parcels up to 5kg in the market.

“Since Covid-19, there has been a dramatic shift in the number of parcels sent daily as South Africans were limited in their movements but still needed ways to send and receive parcels. Prior to lockdown, Paxi moved approximately 100,000 parcels between stores each month. This amount has since tripled,” says Michael Silke, chief executive commercial of Pep Stores.

The Paxi service is also used extensively by small businesses that need to send parcels to customers through the Pep network of stores. Since inception, nearly 10,000 small businesses have been identified that use Paxi to send parcels to their customers.

The Flash business is another example where innovative technology helps entrepreneurs to drive their businesses forward and is a key part of the Pepkor Group. There are currently 194,000 Flash traders throughout South Africa using the technology which offers a range of financial services, consumer payment options and cellular services.

Pepkor states that Paxi will next turn its attention to playing a bigger part in the e-commerce fulfilment strategy of the Pepkor group.

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