International icon closing its doors in South Africa

International container brand Tupperware will exit South Africa at the end of 2024.

As reported by Newzroom Afrika and Business Day, the food storage company will cease operations in South Africa and other markets by the end of 2024 as part of the company’s larger liquidation and restructuring strategy.

The local closures are set to result in job losses for employees and distributors. Local employees were reportedly offered voluntary severance packages.  

The US-based company filed for Chapter 11 bankruptcy in September due to declining sales and worsening financial circumstances.

Recent regulatory filings showed that the brand’s new owners will focus on eight core markets, which exclude South Africa and Australia.

The closure of Tupperware may be a confusing concept for many South Africans, with the brand’s name often used as a placeholder for all forms of plastic food containers. This is also the case for Jacuzzi, Jet Skis, Chapstick and Frisbees, where the brand itself becomes synonymous with the product.

Joins the long list

Tupperware thus joins a long list of international companies that are exiting or scaling back their operations in South Africa.

In May, it was announced that French-based BNP Paribas is no longer operating as a bank in South Africa after its licence was 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Bank Deputy Governor Nomfundo Tshazibana, BNP Paribas’s ability to conduct the business of a bank via a branch was withdrawn in March.

The bank, which is the sixth largest in the world, has started cutting back from its non-core operations across Africa to focus on Europe and Asia instead. The group, however, still owns local retail credit provider RCS.

HSBC also announced that it had reached an agreement to transfer the business of its branch in South Africa to FirstRand.

The London-based bank said that the transaction would include the transfer of the branch’s clients and banking assets and liabilities and would provide transferred clients with continued access to banking services in South Africa.

Its branch employees will also be transferred to FirstRand as part of the agreement.

Shell is also looking to sell its downstream business, which includes its forecourts across the country.

The oil giant group will, however, continue to operate its upstream business.

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

The streaming service said it would close its South African operations on Friday, 30 August 2024, noting that many of its channels can already be found on DStv.

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

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

Moreover, Blackcircles, which is billed as the “leading online tyre store,” stopped operating in South Africa in September.

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

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

This includes UK-based coffee chain Pret a Manger and sports retailer JD Sports.

Airline Norse Atlantic Airways has also started operating a route between Cape Town and London.

Sticking with the airline space, Qatar Airways has also acquired a 25% stake in Airlink.

Read: The four ways South Africa can stop its municipalities from collapsing