TFG to use Uber-like delivery model

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The service, which is in pilot phase in Cape Town, will make TFG the first retailer locally to apply the technology in this way. Deliver 2 me uses a geolocation tracking system like that seen in the Uber application, allowing customers to pinpoint their exact location for delivery.

TFG chief information officer Brent Curry said the innovation would add convenience for customers as it was "the most compelling delivery option in the industry".

"When the parcel is ready, TFG will send the customer an SMS. If they choose the ‘deliver now’ option, the parcel will be delivered in their specific location within three hours.

"Customers are able to change their location while delivery is taking place. If that is the case, TFG will automatically prompt them to drop a pin at their new location," said Curry.

The service will be offered in partnership with Wumdrop. Plans are to take it live in February in Cape Town, Johannesburg and Durban.

The introduction of the service comes as retailers start trying to capture slices of the growing e-commerce market in SA. Clothing retailers, in particular, have been slow to offer e-tailing in addition to their bricks-and-mortar stores.

Strictly web-based players, such as Spree and Zando, have been game-changers, forcing an acceleration of innovation in the industry. Studies have shown that consumers who shop online spend more than they do in-store.

Curry said the group was on track to have all 20 local stores on its eMall by the end of 2018 and to hit a target of R550m in annual online sales by the end of 2020. UK operations Whistles and Phase 8 would join in 2019.

"International brands that have been trading online for many years achieve 5% of their sales online. Already we are operating at more than 1% of total sales and our goal is to reach 5% within six to eight years," said Curry.