RedMart is moving operations on its app and website to Lazada

RedMart co-founder Roger Egan has been appointed Lazada Group’s head of supermarket, after the online supermarket said it was moving its operations onto Lazada’s platform.
The Straits Times

If you rely on RedMart for your weekly grocery runs, you can soon delete the app from your mobile phones because by mid-March, you will need it no more.

The online supermarket said on Thursday (Jan 31) that it will be moving all operations on its mobile apps and website to the Lazada platform at midnight on March 15.

As a result of the move, all you will need to order groceries and products on RedMart is the Lazada app or website.

Lazada Group, which bought RedMart in 2016, said the move was “part of plans to accelerate its growth to become the region’s biggest e-commerce ecosystem”.

“This will boost Lazada’s grocery and supermarket offering to more than 165,000 products, the largest assortment yet offered by any grocer in Singapore,” the group said.

Lazada promised that the new RedMart will feature similar design, tools and functions as the existing RedMart App and website. Shoppers will still be able to choose a two-hour delivery timeslot from 7am to 10pm, and have their orders fulfilled by RedMart.

The difference is that shoppers will get to complete other transactions from Lazada’s other stores in one single checkout. They will also be able to pay for RedMart items using their Lazada Wallet.

RedMart co-founder Roger Egan, who has been appointed Lazada Group’s head of supermarket, will now have a regional role, overseeing the expansion, launch and operations for Lazada’s supermarket business and delivery network across the region.

Egan said at a press conference that “a very large percentage” of customers had accounts on both Lazada and RedMart, and the merger would serve these “overlapping” customers.

Lazada Singapore CEO James Chang added that RedMart had been seeing increased purchases of non-grocery items, such as microwaves and water kettles, while Lazada also saw a steady increase in purchases of grocery items on its site.

In a statement, the group said it is looking to launch its grocery and supermarket business in “at least one other city” in the region from the second half of 2019. It did not specify which cities had caught its eye.

According to Lazada, the grocery market in Southeast Asia is expected to be worth US$309 billion by 2021, with shoppers doing groceries online more than twice a month. It also claims that in Singapore, seven in 10 people who buy their groceries online already do so on RedMart.

“We want to drive the evolution of grocery shopping in the region by combining our unparalleled assortment of products and superior logistics network to transform the way customers get their daily essentials and fresh produce,” Jing Yin, co-president of Lazada Group said.

Yin added that it took two years for the company to integrate RedMart on its site as it did not want to sacrifice “any part of the (RedMart) experience”.