Amazon to eat Woolworths, Shoprite and Takealot lunch? - The pandemic may have disrupted the analogue business models of South African retailers to the online world. Amazon, unlike Walmart, is possibly an even bigger disruptor lying in wait
Of all South African retailers, the expectation was that Woolworths, with its higher-earning consumer, should have been best-placed for the disruptive effects of the Covid pandemic to its operations, as consumers who were once lukewarm to online shopping quickly switched their habits.
But Woolies was found wanting as its rivals Shoprite and The Foschini Group — owner of Markhams — stole a march and were much better prepared to service demands from a customer base looking for the fastest delivery to their doorstep. The Cape Town-based retailer under the leadership of Roy Bagattini — who came on board just before the pandemic struck — has sought to claw back some of the lost ground by following a host of mainstream players that have focussed on online retailing space.
Before the disruptive effects of the pandemic, there wasn’t much airplay given to the potential of online commerce in the South African context. Analysts, for the most part, were focussed on the performance of brick-and-mortar stores spread across the almost 2 000 malls in the country.Subscribe to the M&G today for just R30 for the first three months* to gain access to this story and all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.
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