This archive report was first published on 22 July 2019.
July 22, 2019, marked a significant shift in the retail landscape as local retailers and grocery outlets began forging partnerships with e-commerce firms to cater to the increasing demand from young, tech-savvy shoppers.
According to Nielsen's Retail Measurement Defined FMCG Basket findings, e-commerce is poised to grow five times faster than offline transactions over the next five years, with three out of 10 local shoppers willing to shop online in the next six months.
French-based retailer Carrefour, Tuskys, and Naivas have signed deals with e-commerce giant Jumia, while Chandarana FoodPlus has an ongoing agreement with digital retail platform Grocerypik. Naivas, Onn the Way Supermarket, and Zucchini have also partnered with Spanish delivery firm Glovo to expand their customer base in areas where they lack physical stores.
“The channels we reach our customers will change rapidly, of course, with lots of focus on our online and direct delivery platforms,” said Tuskys chief executive Dan Githua.
However, quality concerns, additional costs, and delivery time remain significant barriers to online shopping, with trust levels being low in the local e-commerce landscape.
