Zando shuts down in South Africa with massive clearance sales: Everything must go
Jumia Technologies, has announced it will be shutting down its South African online fashion platform, Zando, after more than a decade of operations.
This move is part of a broader strategic shift to focus on markets with stronger growth potential. In addition, Jumia will also be exiting Tunisia, as revealed in a statement on Thursday.
The decision follows a comprehensive review of the company’s performance in these two countries.
Jumia’s CEO, Francis Dufay, explained that the closures would allow the group to allocate resources more effectively towards markets that show greater promise for long-term profitability.
He stated, "Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability. After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia."
According to Jumia, South Africa and Tunisia contributed only 3.5% and 2.7% of total orders, and 4.5% and 3% of gross merchandise volume for the six months ending June 2024. These figures underscored the limited impact of both markets on Jumia’s overall business.
Focus Shifts to Core Markets
Despite Zando's prominence as a leading fashion retailer in South Africa since its launch in 2012, and Jumia’s decade-long presence in Tunisia offering a broad range of merchandise, the company’s focus will now shift to core markets like Egypt, Kenya, Morocco, and Nigeria. These regions have shown stronger growth potential and are key to Jumia’s future plans.
In light of the closures, Jumia has confirmed there will be no plans to sell either operation. Instead, clearance sales will be held as Zando and Jumia Tunisia wind down. Unfortunately, this move will result in around 110 job losses, though the company is looking to relocate some affected employees to other divisions within Jumia.
Challenges in South Africa and Tunisia
Dufay also noted that competitive and macroeconomic conditions in both South Africa and Tunisia had limited growth, making it difficult to meet expectations. “Decisions like these are never easy and we are extremely grateful to team members in both countries, who worked tirelessly to serve our customers every day. We are also grateful to our suppliers, vendors, and logistics partners in these markets,” he added.
Massive Clearance Sale
As part of its exit from the South African market, Zando is offering major clearance sales on its website. Customers can find significant discounts across various categories, with kids' items starting from just R19, women's clothing from R39, and men's clothing from R32. Homeware products are available from R40, along with electronics also starting at R40.
In addition to these deals, Zando is hosting hourly flash sales, offering even more opportunities for extra savings. These promotions are expected to run until the platform officially ceases operations.
Written by: Shihaam (Gabriella) Steyn - Adams.
Guzzle Media
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