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eCommerce SA's online retail worth over R9 billion in 2016

June 4, 2016

World Wide Worx predicts SA's online retail market will be worth over R9 billion in 2016.
Local retailers are seeing a steady uptick in online shopping numbers as more South Africans embrace e-commerce.

In Pick n Pay and Mr Price's latest results, both retailers showed strong growth in online sales.

Mr Price says its local online sales grew by 63.6% for the 53 weeks ended 2 April. Mr Price says the online business is now generating positive returns and all its MRP brands are now "full omni-channel retailers". This as the group saw total revenue for the year grow over 8% to R19.6 billion.

In the year ended 28 February, Pick n Pay saw its strongest turnover growth since 2010. This included a 38% increase in turnover growth from Pick n Pay Online over the year, "with a stronger range and a substantial improvement in product availability". The team says it is particularly pleased with the growth in demand from its business-to-business (B2B) customers.

"The online business in the Western Cape has benefited from the dedicated picking warehouse established at the Brackenfell Hypermarket last year, and the group will look to invest in a similar solution in the Gauteng region, towards the end of this year," the group says.

In the 2015 financial year, Pick n Pay also delivered strong double digit e-commerce growth and added 40 000 new online customers.

The Foschini Group says it is investing in its omni-channel roll-out and will launch online sales for Foschini cosmetics, @home furniture as well as the Markham and Fabiani brands this year. This after its sports division brands −Totalsports, Duesouth and Sportscene − launched online selling in the past financial year, which the company says "proved to be successful with results ahead of expectation".

Massmart says it continues to expand and improve its e-commerce offerings. These are primarily from its DionWired, Makro and Masscash Wholesale stores. Massmart's results for the 52 weeks ended 27 December 2015 show online sales now represent about 2% of total sales in those categories that form part of the online offering.

"Makro's customer card data indicates online shoppers continue to visit and shop our stores. We are delighted with the response to our new B2B online commercial customer offering launched in November 2015," it says.

Massmart says a Massbuild online project "to serve the contractor and professional market" is also in the advanced stages.

Woolworths says food sales comprise the majority of its local online revenue, although stronger growth in clothing and general merchandise is now being experienced. In the 52 weeks to 28 June 2015, Woolworths' Country Road brand's online sales contributed close to 10% of total sales, up from 8% the year before.

Woolworths says it continues to invest in innovative digital development focused on digital accessibility and personalisation.

Source: Full Article SA retailers see e-commerce uptick
By Paula Gilbert

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