Takealot and Checkers Dominate South Africa’s E-Commerce Market as Shein and Temu Face Challenges

The South African e-commerce market is thriving, and local giants Takealot and Checkers Sixty60 are at the forefront, outpacing global entrants like Shein, Temu, and Amazon. According to the Boston Consulting Group (BCG), Takealot leads with a 15–20% market share, followed by Checkers with 12–15%, dominating the retail landscape.

Takealot, owned by Naspers, has cemented itself as the go-to platform for a wide range of products, from electronics to groceries. Meanwhile, Checkers Sixty60 has carved a niche with its on-demand grocery delivery service, which now includes general merchandise from Checkers Hyper.

Other notable players include:

• Woolworths: 8–10% market share.
• Superbalist: 5–6% market share.
• A mix of smaller players like Makro, Bash, and Pick n Pay make up the remaining 45–55%.

What South Africans Are Buying Online

BCG’s data reveals that South Africans love shopping for fashion, which accounts for 35% of the e-commerce market. Other key categories include:

• Electronics, toys, and games: 25%.
• Groceries and alcohol: 20%.
• Home and electronics: 13%.
• Beauty and personal care: 5%.
• Other categories like books and pet products: 2%.

While local retailers thrive, foreign entrants like Shein and Temu face significant hurdles. Their reliance on international shipping results in longer delivery times and customs complexities. However, Amazon is positioning itself as a formidable competitor by establishing local inventories to offer faster delivery in major metros.

South Africa’s e-commerce sector currently makes up 5–7% of the retail market but is growing rapidly. Over the past five years, the industry has expanded at an annual rate of over 30% and is projected to maintain growth above 20% annually through 2029.

The Covid-19 pandemic accelerated this growth, encouraging innovations like Takealot’s same-day delivery and Checkers Sixty60’s grocery services.

As South Africa’s e-commerce market matures, BCG predicts it will follow global trends, where two dominant players control around 50% of the market. This is evident in markets like:

• China: Alibaba (32%) and JD.com (27%).
• US: Amazon (31%) and Walmart (7%).

With their strong foothold, Takealot and Checkers are well-positioned to lead, but competition from global giants signals a new phase of digital retail in South Africa.

South Africa’s e-commerce market is at a turning point. With rapid growth, innovative services, and increasing competition, the industry promises a dynamic future. Local leaders Takealot and Checkers are setting the pace, but global challengers like Amazon and Shein are pushing boundaries, ensuring a vibrant and competitive marketplace for consumers.

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