Another international retailer shuts down in South Africa

British-based online tyre store, Blackcircles, has ceased operations in South Africa.

As reported by TopAuto, Blackcircles entered the South African market in December 2021 but officially ceased domestic operations in September 2024.

The company was founded in the UK in 2001 and was named the “leading online tyre store” in the country.

Tyre conglomerate Michelin acquired the company in 2015 after which it expanded into several regions, such as Canada, Egypt, Mexico, Thailand and South Africa.

In South Africa, it was owned by the Sumitomo Rubber South Africa – the nation’s largest tyre manufacturer.

The company allowed consumers to browse and purchase tyres online, and set a location and date at which the tyres would be installed. Customers would then drive to the fitment centre, with tyre selection and payment already handled.

It also listed easily accessible consumer reviews and advice from a team of online tyre experts.

However, the company’s website now displays the news below:

“We are sad to announce that Blackcircles South Africa is ceasing operations from 30th September 2024. It has been our privilege to serve you over the years, and we are immensely grateful for your trust and support.”

Major exits

The news follows several international companies leaving or scaling back their operations in South Africa.

In May, BNP Paribas, the sixth-largest bank in the world, stopped operating as a bank in South Africa after having its licence removed.

In a government gazette signed by Prudential Authority CEO and South African Reserve Bank Deputy Governor Nomfundo Tshazibana, BNP Paribas’s ability to conduct the business of a bank via a branch was withdrawn with effect from 8 March 2024.

The French bank has started cutting back from its non-core operations across Africa to focus on Europe and Asia instead. The group, however, still owns credit provider RCS.

Uk-based bank, HSBC, also announced that it had reached an agreement to transfer the business of its branch to South Africa to FirstRand Bank/

The London-based ban, which has operated in South Africa since 1995, said that the transaction will include the transfer of the branch’s clients and banking assets and liabilities and will provide transferred clients with continued access to banking services in South Africa.

HSBC’s branch employees will also be transferred to FirstRand as part of the agreement.

Oil giant Shell is also looking to sell its downstream business, which includes its petrol stations across the country. The group will continue to operate its upstream business.

UK-based streaming service Britbox also stopped operating in South Africa in August.

Earlier this year, the streaming service said it would close its South African operations on Friday, 30 August 2024.

The company said that many of the BBC-branded channels can already be found on DStv.

When it comes to retailers, Jumia Technologies, which operated Zando in South Africa, exited the country amid intense competition and cost-cutting efforts.

Zando’s domain now belongs to The Foschini Group’s Bash.

Despite the exits, several other international companies are making their way to South Africa.

This includes UK-based coffee chain Pret a Manger and airline Norse Atlantic Airways.

Read: Glimmer of hope for one of South Africa’s biggest sectors