Takealot Group has announced it sold Superbalist to a South African consortium of retail and private equity investors, led by Blank Canvas Capital. Picture: Superbalist website
E-commerce giant Takealot Group has sold its online fashion retailer, Superbalist, to a South African consortium of retail and private equity investors, led by Blank Canvas Capital.
The acquisition of Superbalist comes after speculation that Takealot Group will be selling the online fashion retailer due to competition from low-cost Chinese retailers, Temu, and Shein.
In a press statement, the group said it finalised the sale with private equity investors on 1 September 2024.
The statement details that the acquisition will support Superbalist’s ongoing growth, while the Takealot Group will give their undivided efforts to expand Takealot and Mr D.
“We extend our best wishes to the Superbalist team as they embark on this new chapter in their journey.”
The Group has reassured consumers that services will continue without interruptions throughout the transition period.
However, Takealot will continue to provide warehousing and logistics services to Superbalist through a multi-year service agreement.
“The Takealot Group remains committed to providing exceptional value and service to our customers. Backed by our parent company, Naspers, we are well-positioned to strengthen our market-leading positions in the eCommerce sector, ensuring continued growth and success for both Takealot and Mr D.”
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Earlier this year, Takealot started to look into selling Superbalist due to concerns about competition from low-cost Chinese retailers, Temu and Shein. Daily Investor reported Shein, Wish, and Temu’s presence in South Africa has been visible.
At the time, Temu was offering free shipping services and using coupon discounts to get popular with people in the country. Takealot, owned by Nasper acquired Superbalist in August 2014 from three local entrepreneurs, Luke Jedeikin, Claude Hanan, and Daniel Solomon who founded the online fashion retailer in 2010.
Founders, Hanan and Jedeikin continued to lead and operate Superbalist as an independent following Takealot Group’s acquisition. But in December 2019, the founders officially cut ties with Superbalist and joined The Foschini Group (TFG), two years later, to help the company realise its eCommerce ambitions.
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As of 1 September 2024, consumers will pay VAT in addition to the current 20% flat rate customs duty as an interim measure. This follows after the South Africa Reserve Services (Sars) announced they will be implementing a 45% tariff on imported clothing from low-cost Chinese retailers.
Consumers have been importing items from the likes of Shein and Temu without paying the correct tax. Although the taxman has not set a date on when the appropriate tax will be implemented, its spokesperson, Siphithi Sibeko told The Citizen the implementation is not off the table.
The two online stores have been using the de minimis rule which allowed parcels with clothing under R500 through customs paying only 20% import duty and no VAT. This is different from local retailers having to pay 45% customs duty as well as 15% VAT for imported clothes.
Sars is set to have consumers who import clothing from the two online stores pay the normal 45% customs duty, even if the parcel is under R500.
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