Tupperware has listed its industrial property and head office in Brakpan, Gauteng, for sale as part of its strategy to dispose of non-core assets.
- The sale of the property does not mean the end of Tupperware’s activity in the South African market.
- The company is facing financial hardship and has liquidity concerns, leading to a review of its estate portfolio to improve its capital structure and near-term liquidity.
- Tupperware is considering property dispositions, sale-leaseback transactions, right-sizing efforts, monetization of fixed assets, cash management, and marketing and channel optimization to address its financial position.
- The wide availability of cheaper alternatives has made it challenging for Tupperware to compete, and the brand may have priced itself out of the market.
- Tupperware’s high-quality products may be seen as expensive in an increasingly throwaway world.
- The company will need to rethink its sales model and customer engagement strategy to adapt to the changing retail environment and the rise of e-commerce.
- Historically, Tupperware sales in South Africa relied on the direct selling model, with women playing a significant role in driving product sales through party plan sales.
- Tupperware may need to adapt to the consumer’s demand for on-demand services offered by e-commerce giants like Amazon.