Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      How AI agents could rewrite the rules of South African banking - Chipo Mushwana

      How AI agents could rewrite the rules of South African banking

      8 June 2026
      South Africa's leap to modern Wi-Fi has barely begun

      South Africa’s leap to modern Wi-Fi has barely begun

      8 June 2026
      TechCentral appoints Dr Fanie van Rooyen as deputy editor

      TechCentral appoints Dr Fanie van Rooyen as deputy editor

      8 June 2026
      End of the line for the green ID book in South Africa - President Cyril Ramaphosa

      End of the line for the green ID book in South Africa

      8 June 2026
      Apple plays AI catch-up as Siri gets a long-awaited reboot

      Apple plays AI catch-up as Siri gets a long-awaited reboot

      8 June 2026
    • World
      Meta declares war on Israeli spyware firm

      Meta declares war on Israeli spyware firm

      8 June 2026
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
    • In-depth
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Retail and e-commerce » South African e-commerce is a Covid-fired market of risk and reward

    South African e-commerce is a Covid-fired market of risk and reward

    By Agency Staff15 July 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Like many of her compatriots, Kubashnee Moodley made her first foray into online shopping during South Africa’s coronavirus lockdown. She is not a satisfied customer.

    The 42-year-old business management coach was once charged for a parcel she never received and also had groceries delivered to her Johannesburg home after dark. “I was not going to risk going to the gate … especially with crime so high,” she said.

    Moodley’s experience encapsulates the challenging situation facing the e-commerce sector in South Africa.

    The post-Covid boom is straining the capacity of even the largest retailers, leaving some customers complaining of long wait times and poor service

    Having long lagged behind much of the world in terms of e-commerce, South African retailers and delivery start-ups have been doing a roaring trade online as consumers shy away from shops during the Covid-19 pandemic, with the likes of Pick n Pay, Checkers and OneDayOnly experiencing an explosion in demand.

    But this post-Covid boom is straining the capacity of even the largest retailers, leaving some customers complaining of long wait times and poor service.

    The ability to alleviate those growing pains will dictate which companies emerge as e-commerce leaders and which will be left behind.

    Factors such as fear of parcel theft, online fraud and high mobile data costs have long hindered South African e-commerce growth, experts say.

    Challenges

    Global e-commerce leviathan Amazon does not operate in the economy of 58 million consumers, partly because of the cost and challenges of setting up the required infrastructure, analysts say. And African giant Jumia only launched in South Africa this year.

    Amazon, the vast majority of whose customers have to rely on cross-border shopping at its 16 websites around the world, declined to comment.

    E-commerce accounted for only 1.6%, or US$1.2-billion, of South African retail sales in 2019, according to London-based market research firm Euromonitor International. In the US, the figure is 14.8%. Even Kenya shops more online than its larger neighbour.

    However, Euromonitor expects sales to double this year while Nielsen South Africa’s retail lead analyst Gareth Paterson predicts up to 200% growth in online food purchases.

    A survey conducted by Visa found that 64% of consumers in South Africa bought groceries online for the first time because of the coronavirus outbreak and that 53% made their first online purchase from a pharmacy.

    When lockdown restrictions imposed in late March were loosened in May, market researcher Urban Studies found that only 50% to 70% of customers returned to shopping centres.

    This was the quantum shift. We probably advanced two to three years in terms of online demand because of Covid-19

    “This was the quantum shift,” said Anthony Thunstrom, CEO of clothing and homeware retailer TFG. “We probably advanced two to three years in terms of online demand because of Covid-19.”

    Nikki Lincoln, a 34-year-old communications specialist, thought shopping online would spare her the “unnecessary risk” of going out during the pandemic.

    “Woolworths has closed off online deliveries for my area, so I can’t shop there at all. And Pick n Pay has such a long waiting time you might as well just go to the shop,” she said, naming two of South Africa’s leading supermarket chains.

    Woolworths said that home delivery suspensions were temporary, resulting from an employee testing positive for the virus, but acknowledged that increased demand had caused delays.

    Click and collect

    In April it launched a drive-through click-and-collect service, boosting its online capacity by 50%.

    When the lockdown began, Pick n Pay partnered with Bottles, an alcohol delivery app that expanded into groceries with the promise of same-day service.

    “Our enhancements last year to create a stronger online operation … enabled us to expand our offer in response to the demand for online shopping. Our team rapidly increased its capacity and reach and met the needs of many new customers,” Jessica Knight, head of online at Pick n Pay, said without commenting specifically on delays.

    Sixty60 — a grocery delivery app run by Shoprite’s Checkers supermarkets — backed away from hourly dispatching, opting instead for same-day delivery. It is now expanding its delivery area weekly.

    Companies hoping to compete, therefore, are quickly pumping money into their e-commerce offerings even as they feel the pain of a pandemic-induced economic downturn.

    Grocery delivery business Zulzi was forced to limit trading to two hours a day for two weeks after shoppers overwhelmed its app, but it has since quadrupled the number of shoppers and drivers it employs and doubled its customer care staff.

    It is now processing 2 000 orders a day — five times 2019 levels — and has done a year’s worth of turnover in the past two months.

    TFG, the brands of which include @home, Foschini and Markham, plans to raise R3.95-billion this month, partly to bolster its e-commerce business.  — Reported by Nqobile Dludla, with additional reporting by Promit Mukherjee, Olivia Kumwenda-Mtambo, Libby George and Omar Mohammed, (c) 2020 Reuters

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Amazon Anthony Thunstrom Checkers OneDayOnly Pick n Pay Sixty60 TFG top Zulzi
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleChina warns UK: Dumping Huawei will cost you
    Next Article Microsoft launches first Surface devices in South Africa

    Related Posts

    In South Africa, the bundle is the new battleground

    In South Africa, the bundle is the new battleground

    5 June 2026
    Bash powers TFG online sales as group profit tumbles

    Bash powers TFG online sales as group profit tumbles

    5 June 2026
    Surplus groceries, straight from the browser - Still Good co-founders Lorenzo Parisi and Nabeel Gool

    Surplus groceries, straight from the browser

    5 June 2026
    Company News
    Entries open for Everlytic's You Mailed It Email Marketing Awards 2026

    Entries open for Everlytic’s You Mailed It Email Marketing Awards 2026

    8 June 2026
    Finance Transformation Africa charts blueprint for borderless finance

    Finance Transformation Africa charts blueprint for borderless finance

    8 June 2026
    The real hurdle for South Africa's AI voicebots isn't the AI - 1Stream

    The real hurdle for South Africa’s AI voicebots isn’t the AI

    5 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    How AI agents could rewrite the rules of South African banking - Chipo Mushwana

    How AI agents could rewrite the rules of South African banking

    8 June 2026
    Meta declares war on Israeli spyware firm

    Meta declares war on Israeli spyware firm

    8 June 2026
    South Africa's leap to modern Wi-Fi has barely begun

    South Africa’s leap to modern Wi-Fi has barely begun

    8 June 2026
    TechCentral appoints Dr Fanie van Rooyen as deputy editor

    TechCentral appoints Dr Fanie van Rooyen as deputy editor

    8 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}