'Everything must go:' Online fashion retailer Zando quits SA
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Africa-focused e-commerce group Jumia Technologies, which is listed in New York, is shutting its Zando platform in SA after more than 10 years in the country.
Also announcing a plan to exit Tunisia in a statement on Thursday, the group said the closure of these markets will allow it to focus its resources on its "most promising markets that have a stronger growth potential".
It noted that for the six months to end June, SA and Tunisia combined accounted for only 3.5% and 2.7% of total orders and 4.5% and 3% of gross merchandise volume respectively.
Jumia said the strategic decision to close operations in these markets was expected to improve overall efficiency across its business.
CEO Francis Dufay said the decision to close the businesses came after a "thorough analysis", adding that the two countries accounted for a "negligible portion" of its overall operations.
"Furthermore, competitive and macroeconomic conditions in both markets have limited each country's growth potential, and their contribution to our overall business has not aligned with expectations."
In SA, online retail competition is intensifying with the entry of Chinese players such as Shein and Temu, which have significantly disrupted the local market.
At the same time, US giant Amazon has also entered the fray, officially launching its South African marketplace earlier this year.
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Jumia believes exiting the markets would enable to refocus resources on its remaining nine markets, leaving it "better positioned to accelerate overall growth and further improve efficiency".
The company expects to cease operations in both SA and Tunisia by the end of 2024 and its local website Zando.co.za has already positioned itself for this exit, announcing an "everything must go" sale on the site, with discounts of up to 50% and even higher in some cases.
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