Takealot Group, which includes South Africa’s largest online retailer Takealot.com, has reported a 27 percent increase in revenue as it nears breakeven. The Takealot Group also includes Superbalist and Mr D Food, and the entire entity has reported a 34 percent improvement in gross merchandise value. This led to a trading loss of about R111 million, translating to a trading loss margin of 1 percent.
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Superbalist and Mr D Food grew revenues by 43 percent and 62 percent respectively. “Mr D benefited from increasing awareness of online food delivery, a slower recovery of the restaurant market, and shifting consumer demand online. The business grew both orders and GMV by 51% and improved overall profitability,” Naspers said.
Of course, there is the looming threat of Amazon, who will be entering the South African fray within a year. It will be interesting to see how the Takealot Group competes once the retail giant opens its own warehouses and delivery infrastructure in the country.
“A recovery over the full year saw revenue increasing by 12% to US$257 million (R4.1 billion) and a trading profit of US$17 million (R269 million),” Naspers said.
“This turnaround performance against the prior year’s losses was bolstered mainly by continued strong growth in digital subscribers 27% and advertising 16%, a robust recovery in print media, and excellent school textbook orders and trade sales.”
The company has over 6,000 employees and more than 13,000 drivers working for the company at the moment.
Bob van Dijk, CEO of Takealot Group’s parent company Naspers, has said that Takealot Group has built a powerful e-commerce and logistics platform that will stand it in good stead in the increasingly competitive market.
“I was in South Africa two weeks ago and spent a lot of time talking to people around how they experience the service. Takealot has built a very well-organised logistics and delivery network and they have spent more than a decade doing that, and doing it at scale, which allows for efficiency and predictability,” Van Dijk said.
“They have been able to launch a customer proposition that people really like … and, with very few exceptions, people are enthusiastic about the quality of service, the pricing, the logistics and the predictability of it. That’s not very easy to replicate,” he said.
