Jumia ends operations in South Africa, Tunisia
Jumia Technologies, an e-commerce retailer focused on Africa, plans to close down its South African online fashion retailer Zando and its operations in Tunisia by the end of the year, as part of a strategic shift towards more profitable markets, according to CEO Francis Dufay.
To achieve profitability, Jumia is implementing aggressive cost-cutting measures, including reducing its workforce, exiting the everyday grocery and food delivery sectors, and scaling back delivery services not related to its core e-commerce business.
Dufay explained that the trajectory of the countries did not align with the group's strategy, citing complex macroeconomic conditions, a competitive landscape, and limited medium-term growth potential in these regions. He emphasized that the move will allow the company to concentrate its resources on the other nine markets where growth prospects are more promising.
Jumia's remaining markets include Egypt, Kenya, Morocco, and Nigeria, and Dufay expressed confidence that success in these regions could help recover volumes lost from the closures in South Africa and Tunisia. He noted that Zando and the Tunisian operations contributed only 2.7% of total orders and 3% of Gross Merchandise Value during the first half of the year.
Zando.co.za, established in 2012 as a prominent online fashion platform in South Africa, will hold clearance sales prior to its shutdown. Jumia's Tunisian operations, running under the Jumia brand for a decade, also offered general merchandise.
Dufay confirmed that there are no plans to sell either operation, and the closures will result in approximately 110 job losses, although some employees may be relocated within the company's other divisions.
This decision comes shortly after South Africa's largest online retail group, Takealot, announced the sale of its fashion subsidiary, Superbalist, citing rising competition from fast-fashion e-commerce giants like Shein and Temu. Dufay acknowledged that the growth potential in South Africa is increasingly challenging due to the highly competitive environment.
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