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Takealot.com, South Africa’s largest online retailer, increased its revenue by 41% to US $ 238 million (R3.7 billion at the time of writing this article), despite being limited to selling only “essential items” during the full closure earlier this year.
Naspers’ owned and controlled e-commerce group generated $ 407 million in gross merchandise value in the six months through September 2020, up 85% from the same period a year ago. GMW is the total value of the merchandise sold.
Even though Takealot was only allowed to sell essential products, its subsidiaries Superbalist and Mr D Food banned the trade altogether, as well as “significant one-time investments related to the pandemic”, it generated a 36% improvement in trade losses.
“Business recovered in late May as trade restrictions were lifted and all three companies outpaced their pre-Covid-19 growth rates in the second quarter,” Naspers said.
“Takealot.com’s main platform grew GMV by 88% in local currency, and its own and third-party businesses grew by 69% and 119% respectively.”
Superbalist, an online fashion retailer, grew GMV by 37% in rand terms and delivered “healthy gross margins,” Naspers said. Mr D Food “continued to scale and expand the local food delivery market”.
Boost recovered
“Once the lockdown regulations were lifted, Mr D Food regained its momentum and increased GMV by 101% in local currency over the period.”
Takealot CEO Kim Reid was a harsh critic of the government’s blocking Covid-19 restrictions, especially during levels 5 and 4, during which time there was an unrestricted e-commerce ban. He described the ban as “incomprehensible” and said it went against the government’s commitment to the so-called fourth industrial revolution.
Kim Reid, CEO of Takealot
“It is incomprehensible that this country cannot see the economic value that the Internet can bring to South Africa in a time of need, the social value that it can bring right now. All over the world it is open and it is doing exactly what it should be doing, which is facilitating social distancing, ”Reid said in an interview with TechCentral on April 24.
“There should be no limitation on online home delivery, there should be no limitation! And I’m not talking about food, food is more controversial, but when we focus on delivering essential and non-essential products to people’s homes … it’s silly (to ban it). “- © 2002 NewsCentral Media
