Gabriel Swanepoel, Country Manager at Mastercard Southern Africa, to delve into the pressing questions on South Africa's retail market.As South Africa’s online retail market heads towards an impressive projected growth of R100 billion by 2026, industry insiders are keen to understand the dynamics shaping this sector. Despite positive forecasts and 35.5% of companies expecting to double their turnover in 2024, a sense of pessimism still lingers.
Operational challenges also contribute to this sentiment. The sector grapples with logistics complexities, high rates of cart abandonment due to payment failures, and the need for continual upgrades in technology and infrastructure. These hurdles require significant investment and diligent management, adding to the industry’s cautious stance.Moreover, growth is unevenly distributed within the industry.
Do you believe that the introduction of global players like Amazon, Temu, and Shein will impact and even benefit the South African market? Why do you think trust, security, and stability were prioritised over pricing when selecting a payment gateway? The evolution in logistics and delivery models, driven by services like Shoprite Checkers’ Sixty60 and next-day delivery with pickup points, is profoundly reshaping the retail sector. The significant growth of these services highlights the critical role of logistics innovation and the trend towards more integrated and efficient delivery systems, reinforcing the importance of adaptability in the evolving retail environment.