Dec 16 2024: South Africa’s largest e-commerce retailer, Takealot, is intensifying its efforts to expand into townships and rural areas by employing thousands of personal shoppers, a move aimed at countering competition from global entrants like Temu, Shein, and Amazon.
Frederik Zietsman, CEO of Takealot Group, acknowledged the impact of these international players on the local retail landscape, noting increased operational costs and heightened competition.
Takealot, owned by Naspers, encompasses Takealot.com, a platform offering a wide range of products, and the food and grocery delivery service Mr D. The group’s market share has declined from 26.5% in 2022 to 20.9% in 2023, with growth in gross merchandise value slowing to 10% in the first half of 2023, compared to 15% in the same period the previous year.
Personal Shoppers for Township Outreach
To boost e-commerce adoption in areas with low digital penetration, Takealot has recruited 2,500 personal shoppers who assist non-tech-savvy consumers by purchasing items on their behalf. The company plans to expand this workforce to 5,000 by 2028, creating a support ecosystem of drivers and franchisees in underserved regions.
The strategy has shown promise, with personal shoppers facilitating purchases for rural clients, such as air fryers and books, bridging the gap between urban e-commerce hubs and remote communities.
Investment in Dark Stores and Automation
To enhance operational efficiency, Takealot is expanding its network of “dark stores” dedicated to fulfilling online orders. It currently operates four such stores near major distribution centers.
The retailer has also invested in automation, with 54 robotic machines introduced in Johannesburg and enhanced systems in Cape Town to handle larger order volumes and improve parcel processing speeds.
E-commerce in South Africa: A Growing Market
South Africa’s online retail sector grew by 29% in 2023 to 71 billion rand ($3.96 billion), with projections indicating that online sales could account for 10% of total retail sales by 2026. While urban centers dominate online spending, Takealot’s township initiative underscores its commitment to tapping into the untapped potential of rural markets.
This focus on underserved areas, coupled with technological advancements, positions Takealot to strengthen its foothold in South Africa’s evolving e-commerce landscape.
