BOMBshell for Zando: Africa-Focused E-Commerce Giant Abandons South African Online Fashion Retread!
Get ready for a fashion apocalypse! Jumia Technologies, the African e-commerce behemoth, has just dropped a bombshell, announcing the shutdown of its struggling South African online fashion platform, Zando, as well as its operations in Tunisia, by the end of the year. That’s right, folks, Zando, the once-thriving online fashion destination, will be no more.
The reasons behind this brutal cost-cutting move are illuminating: the company’s CEO, Francis Dufay, claims the South African market is too competitive, with "complex macroeconomics," low growth potential, and a lack of profitability. In other words, the market is too bloody cutthroat, and they can’t make a profit. Talk about a fashion emergency!
But fear not, dear fashionistas, for Jumia has a plan. By abandoning these markets, they can "refocus" their efforts on the other nine markets, where they "see more promising trends" in scale and profitability. We’re looking at you, Egypt, Kenya, Morocco, and Nigeria! It’s time to party like it’s 1999… in these African markets, at least.
And don’t even get us started on the job losses. Approximately 110 workers will be chopped, but some might get relocated to other parts of the Jumia empire. Talk about a fashion nightmare!
The writing was on the wall for Zando, which was already struggling to keep up with global players like Shein and Temu. It’s no secret that the online fashion game is cutthroat, and it seems Jumia has decided to take a swing at it by abandoning ship. Sorry, Zando fans, but it’s time to say farewell to this fashion favorite.
So, what’s next for these markets? Will another player swoop in and take advantage of Jumia’s retreat? Only time will tell. Stay tuned for more updates on this developing story!
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