Takealot Group is treating the arrival of Amazon not as a looming catastrophe but as an aggressive game that has only just begun.
South Africa’s digital retail space has reached a pivotal juncture. For over a year, foreign giants have been encroaching on domestic turf. Ultra-low-cost Chinese retailers like Shein and Temu have fundamentally changed fast-fashion and discount shopping while global titan Amazon officially entered the fray by launching its highly anticipated Amazon Prime service locally.
Yet, South Africa’s homegrown e-commerce pioneer isn’t backing down. Takealot Group is treating the arrival of Amazon not as a looming catastrophe but as an aggressive game that has only just begun.
At a media briefing in Johannesburg, Takealot Group CEO Frederik Zietsman addressed the surging Takealot e-commerce competition Amazon represents. Rather than expressing concern, Zietsman leaned heavily into Takealot’s structural identity as a proud, localized South African champion.
According to insights published by TechCentral, Zietsman pointed to global precedents such as Mercado Libre comfortably defending its home turf against Amazon in South America as a blueprint for success. “We are a local player, we understand the market better. We have better data and more agility,” Zietsman stated “I find a lot of optimism in our ability to compete.”
Instead of shrinking the pie, Zietsman believes the entry of multi-national platforms will simply accelerate the transition of traditional retail to the internet, expanding the total addressable market. Because the vast majority of South Africans still do not shop online, a growing sector naturally benefits the established market leader.
This confidence is backed by robust financial realities. Parent company Naspers recently revealed that Takealot achieved its first full-year profit in its 15-year history.
Group revenue jumped 18% to hit R17.7-billion, crossing the historic $1-billion mark. Gross merchandise value (GMV) climbed over 14%, enabling the group to swing to a record adjusted operating profit of R171-million—a massive R385-million turnaround from the prior year’s R213.8-million loss.
Takealot.com remains the core powerhouse of this success. The platform itself posted an adjusted R85-million profit, buoyed by a 37% surge in retail media revenue and rigorous cost discipline across its 60 million handled orders.
Takealot’s primary weapon against Amazon Prime is its highly integrated ecosystem, which boasts 6.2 million active customers across three specific pillars which include takealot.com that is the retail mothership, Mr D which is a hyperlocal delivery platform expanding rapidly into 60-minute on-demand groceries via a Pick n Pay partnership and TakealotMore which is a direct multi-retailer subscription service.
While Amazon Prime restricts benefits primarily to its own platform, TakealotMore offers consumers delivery savings across diverse local brands, including Pick n Pay, Absolute Pets, and Wellness Warehouse. This cross-brand strategy has proven highly effective: active memberships grew 74% year over year, and the subscription now covers roughly a quarter of everything the group sells.
Additionally, the group plans to scale Takealot Fulfilment Solutions (TFS) into a standalone revenue stream. TFS saw its logistics revenue rocket by 93.5%, handling critical distribution for major JSE-listed retailers.
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While management celebrates these milestones, Naspers remains understandably cautious. The board declined to reverse a R5.9-billion impairment previously booked against the business, noting that a thin 1% operating margin means there is still work to be done.
Nevertheless, Takealot’s leadership remains focused on a long horizon. With projections indicating the South African online retail market could easily double over the next five years, Takealot is fully counting on its deep local scale, logistical network and homegrown loyalty to keep international behemoths at bay.
