Mahlare appointed group executive chair at Takealot
Takealot Group CEO Mamongae Mahlare will step down as head of the Naspers e-commerce company to become its executive chair with effect from February 1.
Frederik Zietsman, presently CEO of takealot.com, will replace Mahlare.
Kim Reid, group chair and former CEO, will remain a director and “strategic adviser” to the chair and group CEO. Reid is CEO of KingMakers, the Nigerian-based betting firm in which MultiChoice has a 49% stake.
The company said the leadership changes reflect consolidation of the takealot.com and group CEO role. “The streamlining of the leadership between the group and takealot.com will reinforce resources around its flagship online retail and marketplace platform and bring stronger alignment and focus in delivering on its key growth objectives.”
Founded in 2011 and owned by Naspers, Takealot — which is made up of takealot.com, fashion outfit Superbalist and food delivery business Mr D Food — is the biggest e-commerce business in SA. It accounts for about 2% of the overall retail market, which is dominated by brick-andmortar outlets such as Shoprite and Mr Price.
Takealot, which has previously come under criticism for alleged bullying of businesses selling on its site, says its three businesses created and support more than 33,000 jobs. Its biggest unit takealot.com has 12,000 SMMEs selling products on its platform, and more than 10,000 restaurant partners on Mr D, mostly small businesses.
“My role as executive chair is about supporting the leadership to grow the business and on driving opportunities that move our group forward. I will also be collaborating with our stakeholders to champion the enablement of e-commerce and how we can accelerate SMME development in the digital economy to create much-needed jobs,” said Mahlare.
Takealot Group is also preparing for Amazon’s eagerly awaited entry into SA this year, a development expected to disrupt the dominance of Takealot in the local e-commerce market.
Despite Amazon’s deep pockets, rival Shein has already made inroads, winning market share by offering products at cheaper prices to cash-strapped SA consumers.
Departing Naspers CEO Bob van Dijk warned recently that
new competition regulations could give Amazon an edge over local e-commerce firms in a growing retail sector.
At the beginning of August, the Competition Commission, which launched an inquiry into the digital economy in May 2021, called for Takealot to split its marketplace and retail businesses.
The watchdog said the separation is necessary to prevent Takealot from favouring its own products over those of thirdparty sellers and to create a level playing field for small and blackowned businesses.
The report didn’t impose any measures on other online retailers that have physical stores, such as TFG, Checkers and Makro, or on foreign competitors such as Apple, Google, Booking.com and Shein, which the commission had initially targeted before later softening its stance.
Data from World Wide Worx shows e-commerce in SA topped R55bn in 2022.
Takealot says its businesses contribute more than R19bn to GDP and that it pays more than R2bn in taxes a year.
For the half year to September 2023, Takealot remained unprofitable. Its gross merchandise value (GMV) and revenue grew by about 15% and 10% respectively, in local currency, excluding any M&A activity. The group said growth continued despite challenges including rising interest rates and inflation, depressed consumer demand, and load-shedding which placed additional strain on the SA economy.
At the time, Mahlare said the group was on its way to making a profit.
“The business continues to deliver acceleration in e-commerce growth in the country — saving people time and money.
“While the Takealot Group is not yet profitable at a trading profit level, strong momentum towards profitability has been made through takealot.com’s business operations which are generating more revenue than they cost to run. This is a clear indication that the business health is solid, with profitability at an operating level.”
The other two businesses — Mr D and Superbalist — “are on track to do the same at the appropriate point in their development cycle”, she said.
THE BUSINESS CONTINUES TO DELIVER ACCELERATION IN E-COMMERCE GROWTH