Click-and-collect pick-up point partnership a success

FreshStop at Caltex has partnered with Pargo to facilitate online purchase deliveries across the country with the stores becoming Pargo parcel pick-up points for customers, thereby increasing convenience to consumers. In addition, the popularity of the service has also had an impact on the footfall within FreshStop stores and a resultant increase in sales.

Since December 2014, both companies have exponentially increased the number of pick-up points nationally and the quantity of parcels collected and delivered has increased substantially. Online and offline retailers have been using this service as a simple and cost-effective method of delivering goods to Pargo pick-up points, where customers can collect parcels at any time.

Joe Boyle, Director at FreshStop, explains, "Our partnership has been working extremely well and I believe this is due to the many synergies we share. We are both focused on convenience and outstanding customer service and, with most of our stores being open 24/7, customers can collect and drop off parcels whenever it suits them. This convenience, linked to our wide national footprint and continued fast pace in rolling-out stores, ties in well with Pargo's strategic vision."

Pargo currently has pick-up points at 120 FreshStop stores countrywide, with new pick-up points being established every week. "The biggest benefit is convenience. Consumers can now collect their parcels whenever they want and they no longer have to plan their day around the delivery they are expecting. The process is very simple. Consumers select a pick-up point of their choice when checking out on their favourite online shop, which can be located close to either their home or work, but can also be in another town if they are travelling," says Lars Veul, co-founder of Pargo.

Outside business hours pickups favoured by a third

Improved parcel delivery brought about by additional convenience, speed and reliability has led to increased demand from online retailers to use this alternative solution.

"The feedback we've received from customers and retailers has been positive and customers particularly like the fact that this service is available 24/7. Interestingly, 32% of collections happen outside business hours, meaning in the evenings and over weekends. This is the first time in South Africa that consumers have been able to collect their parcels whenever they want, and it is very encouraging to see that this percentage is on the increase," says Derk Hoekert, Co-Founder of Pargo.

With Leisurebooks (Media 24) being one of its biggest clients, books has become the most popular delivery. FreshStop stores that are part of the Pargo network have benefited from the association.

"Over and above the additional revenue stream, our stores, especially our three busiest pick-up points in Milnerton (Cape Town), Paarl and Soweto (Johannesburg), have seen added benefits such as increased foot traffic and, as a result, an increase in sales linked to customers coming into stores to collect their parcels," adds Boyle.

The company's vision of growing the business and becoming the future of parcel delivery in South Africa is becoming a reality. "Like Freshstop, Pargo is extremely brand conscious and sensitive to the customer experience. Streamlined parcel delivery will greatly improve the customer shopping experience and, as a result, further differentiate Freshstop in the marketplace. Our goal is to be in every Freshstop store in the coming months and to offer Pargo at each new FreshStop store that opens," concludes Veul.