Business
Zando Shuts Down in South Africa: Major Online Fashion Retailer Exits After a Decade
Zando Exits South Africa: What You Need to Know About the Online Fashion Retailer’s Closure
After more than a decade of serving South African customers, popular online fashion retailer Zando is shutting down its operations in the country. The platform’s parent company, Jumia Technologies, made the strategic decision to exit the South African market by the end of 2024.
Zando’s closure is part of a broader move by Jumia to refocus its resources on markets with stronger growth potential. Jumia, a New York-listed e-commerce group with a presence across Africa, also announced plans to exit Tunisia. The company stated that these two markets accounted for a minimal share of its total operations, contributing just 3.5% of total orders and 4.5% of gross merchandise volume over the six months leading up to June 2024.
Why Is Zando Leaving South Africa?
According to Jumia CEO Francis Dufay, the decision to close Zando came after a “thorough analysis” of the company’s performance in South Africa and Tunisia. He noted that both markets were responsible for a “negligible portion” of Jumia’s overall operations, and competitive and macroeconomic conditions limited the growth potential in both regions.
In South Africa, the online retail market has become increasingly competitive with the entrance of global players such as Shein and Temu, which have significantly disrupted the e-commerce space. Additionally, Amazon officially launched its South African marketplace earlier this year, further intensifying the competition.
By exiting these markets, Jumia aims to focus on its nine remaining countries where it sees better opportunities for growth and improved efficiency.
What Happens to Zando Customers?
Zando.co.za has already positioned itself for its exit, offering an “Everything Must Go” sale with discounts of up to 50% and, in some cases, even higher. The company expects to cease operations in South Africa and Tunisia by the end of 2024.
The Future of South African E-Commerce
The closure of Zando leaves room for other players to gain more market share in the South African online retail space. However, with the arrival of major international competitors and the growing dominance of local platforms, the future of e-commerce in South Africa remains dynamic and highly competitive.