Superbalist, a major South African online clothing store under the Takealot group, is considering staff reductions as it faces increased pressure from offline retailers. The company has initiated a Section 189 process for business restructuring.
- Superbalist acknowledged that post-Covid growth has fallen short of forecasts, leading them to reassess their structures to ensure operational efficiency in the current economic environment.
- Superbalist is part of the Naspers group, which aims for profitability in its e-commerce businesses by 2025.
- In the year ending June, the Takealot group, including Superbalist and other online entities, reported a widened trading loss due to factors like increased competitive pressure from offline retailers and aggressive pricing by brick-and-mortar stores.
- Superbalist reported strong revenue growth of 11% in rand terms, but faced challenges due to aggressive pricing by brick-and-mortar retailers, which led to squeezed margins and higher trading losses.
- The reopening of offline stores with excess inventory put pressure on e-tail businesses, as those stores sought to offload stock accumulated during closures.
- Superbalist expressed concern for the impact of operational changes on their employees. They emphasized the importance of making decisions that align with long-term business prospects while considering the well-being of their workforce.