Takealot sales soar during Covid

South Africa’s largest e-commerce retailer, the Naspers-controlled Takealot group, reported revenue growth of 55% in the last financial year, despite a ban on unfettered e-commerce during the height of the hard lockdown in 2020.

In the year ended 31 March 2021, which included a full 12 months of the Covid-19 pandemic, Naspers reported that

Takealot’s revenue rose to US$606-million (about R8.7-billion), while trading losses decreased to “near breakeven”.

Gross merchandise value (GMV) traded came in at R16.6-billion, 69% higher than a year ago, thanks to strong growth in Takealot’s third-party offerings, where it manages fulfilment on behalf of other companies. GMV is the total value of goods sold.

“Superbalist, one of South Africa’s leading online fashion destinations, grew GMV 45% in local currency and continued to contribute healthy gross margins,” Naspers said.

“Takealot’s food delivery business, Mr D, also had an excellent year as lockdown conditions shifted consumer demand from restaurant dining to online delivery. As a result, Mr D grew orders 117%, representing 93% growth in revenue year on year.”

The strong financial performance comes despite government’s ham-fisted closure of the economy last year, which included banning the sale of goods deemed “non-essential”.

E-commerce players were included in the ban on the grounds of what Trade and Industry Minister Ebrahim Patel dubbed “fairness”, but the move was almost universally condemned.

In April 2020, at the height of restrictions, Takealot CEO Kim Reid called the ban on e-commerce “incomprehensible”.