Jumia Technologies, an Africa-focused e-commerce retailer, has announced the closure of its South African online fashion retailer, Zando, and its operations in Tunisia by the end of the year.
CEO Francis Dufay stated that this decision aligns with a strategic focus on more profitable markets, particularly Nigeria.
To enhance profitability, Jumia is implementing aggressive cost-cutting measures, which include workforce reductions, exiting the grocery and food delivery sectors, and scaling back non-core delivery services.
Dufay noted that the trajectory of operations in South Africa and Tunisia did not align with the company’s overall strategy due to complex macroeconomic conditions, a competitive landscape, and limited growth potential in these regions.
He emphasized that concentrating resources on nine other markets, including Egypt, Kenya, Morocco, and Nigeria, presents more promising growth prospects.
Dufay expressed confidence that success in these areas could help recoup volumes lost from the closures, as Zando and the Tunisian operations represented only 2.7% of total orders and 3% of Gross Merchandise Value during the first half of the year.
CREDIT: Allneeds, Ambusinessng
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