South African e-commerce giant Takealot, owned by Naspers, is encountering increased competition from newcomers like Temu and Amazon, the company reported in its financial results for the period ending September 30th, 2024.
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While the overall growth figures (11% revenue and 11% GMV) might seem similar to 2023, a closer look reveals a slowdown. Excluding acquisitions and disposals, year-on-year growth in local currency was just 7% for revenue and 11% for GMV compared to the previous year’s 9% and 15%, respectively.
Despite the headwinds, Takealot maintains its market share in general merchandise. The company recently launched a subscription loyalty program, TakealotMore, similar to Amazon Prime, to strengthen customer retention.
Takealot’s logistics and delivery arm, Mr D, prioritizes grocery growth. This focus on groceries boosted overall GMV by 13%, even with slower growth in food delivery (2% GMV increase). Mr D revenue reached $58 million (excluding M&A), a 12% increase driven by the grocery business.
In response to the changing market landscape, the e-commerce business is strategically defending its share. This includes adapting to post-load shedding shopping trends and expanding delivery capabilities with a new Durban distribution centre for faster deliveries.
“Recent trends indicate promising growth as leadership implements improvements,” Naspers concluded.
