Retail giant Takealot will now have competition from Amazon. Image: Twitter
Retail giant Takealot does not seem fazed about impending competition, following the announcement of global giant Amazon breaking into the local South African market.
Tech giant Amazon confirmed on Tuesday that it will be launching Amazon.co.za in the South African market in 2024.
The move, which has been welcomed, is likely to shake up the local online retail sector, putting further pressure and increased competition on traditional retailers like Pepkor, Pick n Pay, Mr Price, Shoprite, TFG, Woolworths, Massmart, and Retailabilty, as well as Naspers-owned Takealot.com.
Amazon’s presence is also expected to put pressure on One Day Only and One Deal a Day.
With local consumers and shopaholics likely to benefit from wider choice and hopefully better prices, Takealot told The Citizen they welcome the competition.
“As a proudly South African company, Takealot pioneered eCommerce in South Africa, giving us a deep understanding of the market opportunity. We believe that any competition is healthy for our economy, the sector, and shoppers.”
ALSO READ: Takealot to comply with laws by labour department
Takealot said it will be business as usual.
“We are proud of our marketplace and our sellers, and the incredible entrepreneurial opportunities afforded to them via our platform. We support their continued growth.”
The announcement by Amazon also caused the share prices of all the major retailers listed on the JSE to dip by midday on Tuesday.
Amazon already has a strong presence in SA through its Amazon Web Services (AWS) tech business and operations in Cape Town and Waterfall City.
In a statement, the global giant said Amazon.co.za would provide South African-based sellers with the ability to reach customers across the country.
“More than 60% of sales in Amazon’s store are from independent sellers, most of which are small and medium-sized businesses, providing a vast selection of products, competitive prices, and great convenience for consumers,” it said.
“We look forward to launching Amazon.co.za in South Africa,” said Robert Koen, general manager of the Sub-Saharan Africa region for Amazon.
Additional reporting by Suren Naidoo Moneyweb
ALSO READ: Amazon coming to SA in 2024: You can sign up to start selling already
Catch up with the latest news from The Citizen on WhatsApp by following our channel. To join, click here.
Download our app and read this and other great stories on the move. Available for Android and iOS.
