Takealot Forces Expansion into Rural Areas of South Africa

The largest e-commerce retailer in South Africa, Takealot, has launched an initiative to strengthen its presence in townships and rural areas of the country. For this purpose, the company has hired thousands of personal shoppers to facilitate online shopping for tech-averse customers. This measure follows increased competition from international market players such as Chinese fashion retailers Temu and Shein, as well as the US giant Amazon, who are leveraging the South African market for their growth. Frederik Zietsman, CEO of the Takealot Group, notes that the competition from international players has led to an increase in operational costs. Despite South Africa's advantageous position as a gateway to Africa, with high smartphone penetration and innovative payment methods, Takealot is struggling to grow in a weak economic environment. A study by World Wide Worx shows that Takealot.com's market share declined in 2023. To address this challenge, Takealot plans to increase the number of personal shoppers to 5,000 by 2028. These play a crucial role in promoting e-commerce growth in more remote areas and establishing a local franchise structure. Additionally, the company is pushing the introduction of "dark stores" and increasing the level of automation in its distribution centers with a focus on larger cities like Johannesburg and Cape Town. These efforts aim to enhance efficiency in processing online orders and further drive the rapid growth of online commerce in South Africa, even though this is mainly observed in urban centers.