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Everything must go: online retailer Zando ceases operations in SA
Jumia Technologies, an e-commerce platform in Africa, has announced the planned closure of its operations in South Africa, operated under the brand name Zando, and Tunisia.
Source: www.zando.co.za
The closure of these markets will allow Jumia to focus resources on its most promising markets that have a stronger growth potential.
For the year ended 31 December 2023, and the six months ended 30 June 2024, South Africa and Tunisia combined accounted for only 3.5% and 2.7% of total orders, and 4.5% and 3.0% of GMV, respectively.
The strategic decision to close operations in these markets is expected to improve overall operational efficiency across Jumia's business.
Jumia CEO, Francis Dufay said, "Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability. After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia. Both businesses account for a negligible portion of our 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. Decisions like these are never easy and we are extremely grateful to team members in both countries, who worked tirelessly to serve our customers every day. We are also grateful to our suppliers, vendors and logistics partners in these markets. We deeply thank them for their hard work and service to Jumia."
Jumia believes that exiting these markets and refocusing resources on its other nine markets will leave the company better positioned to accelerate overall growth and further improve efficiency.
The company expects to cease operations in both South Africa and Tunisia by year end 2024.
Since its inception in 2012, Zando has been committed to revolutionising the online shopping experience for Africans, bringing fashion and convenience directly to their fingertips.
From its humble beginnings, Zando has grown to become a household name, serving millions of customers across Africa.
By leveraging the power of technology, Zando has been able to reach even the most remote rural areas, bridging the gap between urban and rural communities.
Its exit announcement comes shortly after Takealot announced the sale of Superbalist, its online fashion business, in the face of increasing competition from Chinese competitors Shein and Temu.
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