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Takealot Expands into South African Townships to Outpace Global Competitors

South Africa’s leading e-commerce retailer, Takealot, is strategically targeting townships and rural areas to fend off global competitors like Temu, Shein, and Amazon. By hiring thousands of personal shoppers, Takealot aims to bridge the digital divide and enhance its market presence in underserved regions.

Takealot’s CEO, Frederik Zietsman, revealed that insights have shown e-commerce struggling to gain traction in townships. By recruiting personal shoppers, Takealot seeks to assist non-tech-savvy consumers in navigating online shopping. This initiative not only bridges the digital divide but also creates job opportunities in underserved communities.

The program allows individuals to earn supplemental income by purchasing products on behalf of customers. Takealot has already recruited about 2,500 personal shoppers, with plans to expand this number to 5,000 by 2028. This initiative has already shown promising results, with personal shoppers like Achumile Vellem reporting significant sales in rural areas.

Despite the growth potential, Takealot faces challenges such as a weak economic environment and increased competition. The company’s gross merchandise value growth slowed to 10% in the first half of 2024, compared to 15% in the same period last year. However, Takealot remains optimistic about its strategy and continues to invest in infrastructure and technology to support its expansion.

In addition to the personal shopper program, Takealot plans to grow its “dark stores” – stores dedicated solely to fulfilling online orders. The company also aims to establish more franchisees in townships, creating a sustainable ecosystem that supports local economies.

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