Naspers has cautioned that Takealot Group , its South African e-commerce operation, is feeling pressure from new competitors in the local market, including Amazon and Temu. “The business continues to face a slow-growing macroeconomic environment and increased competition from new entrants such as Temu and Amazon impacting Takealot Group’s growth, which was 11% (7%) revenue growth and GMV growth of 11%, excluding Superbalist,” Naspers said in its financial results to 30 September 2024. The 7% growth in brackets represents local currency growth, excluding the impact of acquisitions and disposals, and provides a clearer view of our businesses’ underlying operating performance, Naspers said.
GMV, for gross merchandise value, is a metric used by retailers to measure the total value of goods sold. China’s Temu has become popular in South Africa thanks to its aggressively low pricing, while Amazon, the world’s largest e-commerce retailer, set up shop in South Africa earlier this year. Takealot.
com, the e-commerce store, grew GMV by 10% and revenue by 11% (7%) year on year. The revenue and GMV growth numbers are not dissimilar to the growth numbers reported in 2023, however: year-on-year revenue growth at Takealot Group in the same period last year, compared to 2022, was 9% and GMV 15% in local currency terms, excluding M&A activity. During the current reporting period, Takealot reached a deal to sell fashion retailer Superbalist to a private equity consortium.
This, Nasp.