The Foschini Group is mounting a challenge on its home turf as global giants Amazon, Shein, and Temu expand aggressively in South Africa\u2019s e-commerce market.<\/p>\n\n\n\n
TFG is leaning on its local advantage, using faster delivery times and a robust logistics network to counter international rivals\u2019 typical 10-day waits, CEO Anthony Thunstr\u00f6m said in an interview with Bloomberg.<\/p>\n\n\n\n
\u201cSouth Africa might have been slower to start in terms of proper online penetration,\u201d he said. <\/p>\n\n\n\n
\u201cBut that trend is global. And once it starts, it\u2019s fairly mathematical,\u201d said Thunstr\u00f6m.<\/p>\n\n\n\n
South Africa\u2019s e-commerce landscape has seen a notable shift, with prominent local e-tailers like Superbalist and Zando exiting or restructuring.<\/p>\n\n\n\n
Zando, under Jumia Technologies, announced plans to shut down operations in South Africa by the end of the year. <\/p>\n\n\n\n
It cited challenging economic conditions and fierce competition from international companies such as Shein and Temu.<\/p>\n\n\n\n
The arrival of these low-cost e-tailers has raised the bar for local firms, demanding strong logistics. Superbalist, another major local online retailer under Takealot, was sold to a South African consortium in September after facing intense competition and financial headwinds.<\/p>\n\n\n\n
Through its Bash platform, TFG offers same-day or next-day delivery, a key advantage in a market with expensive logistics, payment challenges, and economic pressures on consumers.<\/p>\n\n\n\n
Yet, it\u2019s a costly fight. TFG has invested heavily in solar power and water reserves, a necessity in a market where interruptions can mean loss of ground to rivals.<\/p>\n\n\n\n
\u201cWe\u2019ve also put contingency plans in place to deliver water to our stores, ensuring that both operations and staff are supported, even in areas experiencing severe shortages,\u201d Thunstr\u00f6m said.<\/p>\n\n\n\n
Meanwhile, TFG is racing to grow its footprint among price-sensitive shoppers, with the 2020 acquisition of Jet expanding its value offering \u2014 a key segment as inflation and high living costs strain household budgets.<\/p>\n\n\n\n
\u201cIt would have taken more than a decade to build a similar footprint from scratch,\u201d he said, adding that the acquisition has already paid for itself \u201cmany times over.\u201d<\/p>\n\n\n\n