The Takealot Group, a prominent online retail entity, has made a significant announcement regarding the divestiture of its fashion retail subsidiary, Superbalist. The announcement revealed that the sale of Superbalist marks a pivotal transition for the company. The acquiring party is a consortium of South African investors, encompassing both retail and private equity sectors, with Blank Canvas Capital taking the lead in this strategic acquisition.
This move is portrayed as a strategic decision aimed at bolstering Superbalist’s growth trajectory while simultaneously allowing the Takealot Group to channel its focus and resources towards the expansion of its flagship operations, Takealot and Mr D. The group’s confidence in this strategic realignment is further reinforced by the backing of its parent company, Naspers, a global internet group and one of the largest technology investors in the world. This backing is anticipated to fortify the Takealot Group’s dominant stance within the e-commerce landscape.
The decision to divest Superbalist was influenced by the evolving competitive dynamics within the online fashion market. Reports from Daily Investor in March highlighted Takealot’s contemplation of selling Superbalist, primarily due to the burgeoning competition from Chinese online fashion retailers, Shein and Temu. These competitors have rapidly ascended to prominence in the online fashion domain, compelling Takealot to reassess its strategic positioning. The management at Takealot perceives a more favorable competitive landscape in contending with Amazon, as opposed to Shein and Temu, in the broader e-commerce market.
In expressing its support for Superbalist’s new journey under the consortium’s stewardship, Takealot also reassured that the transition would be seamless for Superbalist’s customers. The company committed to maintaining uninterrupted service delivery during the transition phase, ensuring that customers face no disruptions in their shopping experience. Additionally, Takealot will continue to extend warehousing and logistics support to Superbalist through a multi-year service agreement, underscoring its ongoing commitment to exceptional customer service and value.
Superbalist’s journey began in November 2010, originally founded as Citymob by Luke Jedeikin, Claude Hanan, and Daniel Solomon. The platform quickly established itself as a premier destination for premium products and exclusive shopping experiences. In 2013, it underwent a rebranding to Superbalist and ascended to become South Africa’s leading online fashion retailer. Its acquisition by Takealot in August 2014 marked a new chapter, with Superbalist operating as an independent brand under its existing management.
Despite the departure of its founders in December 2019 to join The Foschini Group, Superbalist continued to navigate the competitive online fashion market. However, recent challenges, including slower-than-expected growth post-Covid and the entry of formidable competitors such as Wish, Shein, and Temu, prompted Superbalist to initiate a Section 189 process for restructuring.
