Jumia will survive by closing South Africa and Tunisia..
Jumia has been reducing costs to improve profitability, including cutting staff, ending day-to-day sales and food delivery, and reducing delivery services unrelated to its e-commerce trade business. “The country’s approach is not consistent with the group’s strategy,” said Francis Dufay, the company’s CEO, citing the complex macroeconomic, competitive environment and limited medium-term for growth and profitability..He added: We believe this decision is correct. This will allow us to focus our resources on the other nine markets where we will see better trends in terms of volume and profitability.”
Other markets for Jumia include Egypt, Kenya (for example), Morocco (where the trademarked Jumia is used), and Nigeria. Dufay said that the success in both cases will allow us to return the lost profits in South Africa and Tunisia. The two businesses accounted for only 2.7 percent of total orders and 3 percent of total retail value in the six months to June 30, Dufay stated.
(Zando.co.za) founded in 2012 and has since become South Africa’s leading online fashion site. In Tunisia, the business operated under the Jumia brand for about ten years, selling general merchandise.
Dufay said he has no plans to sell any of the work, as pre-closing sales will take place..
Dufay said the closings will eliminate 110 jobs, but some will be transferred to other areas of the group’s operations.
The move to South Africa comes shortly after Takealot declared the sale of its online fashion business Superbalist in September, amid growing competition from online retailers. Shin and Temu which are Chinese.
Dufay stated that in South Africa “plant growth is very difficult” because of the very competitive environment..
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