{"id":865049,"date":"2026-06-30T16:32:50","date_gmt":"2026-06-30T14:32:50","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=865049"},"modified":"2026-06-30T16:32:57","modified_gmt":"2026-06-30T14:32:57","slug":"takealot-group-ready-for-battle-with-amazon-shein-and-temu","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/865049\/takealot-group-ready-for-battle-with-amazon-shein-and-temu\/","title":{"rendered":"Takealot Group ready for battle with Amazon, Shein and Temu"},"content":{"rendered":"\n

The Takealot Group remains optimistic that it will remain the dominant e-commerce platform in South Africa, emphasising that it is now on a path towards sustainable profitability. <\/p>\n\n\n\n

Takealot has recently faced a wave of competition, with South Africa seeing the arrival of Chinese companies Shein and Temu, as well as the Amazon Marketplace. <\/p>\n\n\n\n

While Takealot is owned by South Africa’s most valuable company, Naspers, Amazon is one of the largest companies in the world, while the Chinese companies offer products at extremely low prices. <\/p>\n\n\n\n

Nevertheless, with the Takealot Group recording its first-ever full-year profit, it is optimistic that it will remain the dominant player in South Africa. <\/p>\n\n\n\n

Takealot Group CEO Frederik Zietsman said that the group is not competitor-focused, but rather consumer-focused. <\/p>\n\n\n\n

Zietsman said that the group welcomes the competition, as it can help make it more disciplined.<\/p>\n\n\n\n

He added that it is incredibly common for e-commerce companies in international markets to lose market share in their home markets when competitors arrive. <\/p>\n\n\n\n

However, these e-commerce players tend to remain the dominant players in their respective home markets. This is the case with Bol.com in the Netherlands. <\/p>\n\n\n\n

Companies in their home markets tend to benefit from greater local knowledge and economies of scale, as they invested in infrastructure earlier. <\/p>\n\n\n\n

For the Takealot Group, it now has 300,000 square metres of fulfilment space, which the CEO said gives them a strong base for future growth, with sustainable profits on the horizon.<\/p>\n\n\n\n

Takealot becomes profitable for the first time <\/h2>\n\n\n
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Takealot Group CEO Frederik Zietsman<\/figcaption><\/figure><\/div>\n\n\n

The financial year ending 31 March 2026 was the first year that the group posted a net profit. The group saw its revenue grow 18% to R17.7 billion. <\/p>\n\n\n\n

It went from a R213 million loss last year to a profit of R171 million on an adjusted earnings before interest and tax (aEBIT) basis.<\/p>\n\n\n\n

When using standard IFRS reporting, Takealot Group CFO Tessa Ackerman said the group is profitable on a net income basis, but did not have the figure on hand.<\/p>\n\n\n\n

Ackerman also noted that the group saw positive cash generation, pointing to profits that are not only due to accounting quirks. <\/p>\n\n\n\n

Takealot.com, the group’s core marketplace, recorded R85 million in aEBIT during the financial year. <\/p>\n\n\n\n

On top of the 15% increase in gross merchandise value (GMV), Ackerman added that the group also focused heavily on costs. <\/p>\n\n\n\n

The group reduced capital expenditure during the year, optimised delivery costs and saw greater inventory discipline, which added R16 million to the bottom line. <\/p>\n\n\n\n

Despite swinging into a profit, Ackerman admitted that the group wants to improve on its 1% operating margin. <\/p>\n\n\n\n

It is optimistic that it will continue to generate profit, with the group now benefiting from strong performances across TakealotMore, Mr D, and Takealot Fulfilment Systems (TFS).<\/p>\n\n\n\n

It made R700 million from its TakealotMore subscription service, while its retail media business grew by 35%.<\/p>\n\n\n\n

Mr D’s grocery division also moved into profitability, adding a further boost to the already profitable takeaway delivery service. <\/p>\n\n\n\n

Mr D has also now partnered with Absolute Pets, Frozen 4 You and Nespresso for last-mile deliveries. <\/p>\n\n\n\n

TFS is still in its early stages, but has already seen strong growth, with 3,300 SMEs partnering with the logistics company. <\/p>\n\n\n\n

Zietsman said the group will use its ecosystem of over 6 million customers to make shopping more personal and to achieve economies of scale. <\/p>\n\n\n\n

He said that diversification for the business is key, with future units focused on more margin-rich and less cost-intensive products. <\/p>\n","protected":false},"excerpt":{"rendered":"

Takealot Group believes that it can remain the dominant player in South Africa’s e-commerce space despite the arrival of global giants.<\/p>\n","protected":false},"author":95,"featured_media":779612,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[],"class_list":["post-865049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/865049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=865049"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/865049\/revisions"}],"predecessor-version":[{"id":865075,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/865049\/revisions\/865075"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/779612"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=865049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=865049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=865049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}