South African retail company Massmart is currently in talks to purchase a controlling stake in fellow South African grocery delivery service OneCart Pty Ltd. According to the Walmart-owned company, the acquisition of OneCart is aimed at advancing efforts to expand its eCommerce business.
While South African retailers have long lagged behind many international businesses in the eCommerce sector, they are rapidly making inroads in the post-pandemic world, with record online sales being realized during the height of the coronavirus pandemic.
According to Massmart Group Chief Executive Officer Mitch Slape, “The proposed acquisition is consistent with Massmart’s strategy to invest in and accelerate e-Commerce growth, particularly in the fast growing on-demand delivery segment.”
Prior to the ongoing discussions, Massmart teamed up with OneCart through its wholesaler and liquor store, Makro.
During 2020, Massmart experienced a 58.6% rise in online sales, along with a 73% increase in the number of unique customers. Currently, eCommerce accounts for 1.8% of the company’s total sales; a 1.1% increase from 2019.
Massmart is not alone in its efforts to double down on eCommerce expansions in the face of rising demand. Rivals such as supermarket chain Pick n Pay and grocery and clothing retailer Woolworths have been engaging in home delivery operations of their own.
