In a rivalry that echoes the Walmart/Amazon dustup in the US, Makro and Takealot are going head-to-head here in the S of A. Massmart, you will recall, acquired the last-mile delivery outfit WumDrop, and recently signed a deal for the purchase of 87.5% of marketplace and logistics platform OneCart. There’s work to be done though: In a recent price comparison across an online basket of home electronics, they came in around 8% pricier than Takealot. Next up: digging a little deeper into last week’s Clicks interims, what’s up with UPD? The wholesaler/distributor has traditionally been the Group’s star performer, turnover wise, but turnover declined there to the tune of -3.6% for the period in question. Apparently, sales to private hospitals and independent pharmacies were down, and to make matters worse costs were up +8%. Finally, to Shoprite, which continues to expand its footprint, opening the first supermarket in Emvelo, Mpumalanga, and another in Tshepiso Shopping Centre, Vanderbijlpark.
Comment: UPD will surely be a priority for Clicks in the next reporting period, as rival Dis-Chem is a strong competitor in the distribution business.