Superbalist sale by Takealot: Insights into shifting consumer trends in South Africa

Takealot announced the sale of its popular fashion e-commerce platform, Superbalist, last week, marking a significant change in South Africa’s retail landscape.

The sale comes amid reports of Takealot’s financial struggles, including a R252 million loss, and weakening Superbalist sales reports MyBroadband. TechCentral reports that this decision was made as part of Takealot’s strategy to address changing consumer behaviours and increased competition in the retail market.

The move reflects the growing trend towards conscious consumerism and new entrants like Shein reshaping the fashion industry.

Once heralded as the leading online fashion retailer, Superbalist has struggled in recent years due to mounting competition from global players like Shein and Temu. This development has sparked broader questions about the health of South Africa’s retail sector and the pressures companies are facing in an increasingly globalised market.

Takealot’s decision to offload Superbalist is also part of Takealot’s strategic plan to allow the company to refocus its efforts on its core business, including Takealot.com and Mr D.

But is the sale of Superbalist merely the result of competitive pressures, or does it reflect a much larger trend sweeping through the global retail and consumer landscape?

Global Trends and Conscious Consumerism

It is impossible to ignore the shifts in consumer behaviour globally. IOL reports that post-pandemic, consumers are moving away from overconsumption and fast fashion, seeking to reduce waste and their carbon footprint.

According to The Guardian, more people are now opting for thrifting, pre-loved fashion, and vintage items, as seen in the meteoric rise of platforms like Depop and South Africa’s very own Yaga. IOL goes further to say that this shift isn’t only about saving money but also about making more responsible, mindful buying decisions that align with environmental values.

Eighty20, a consumer strategy, analytics and research company, released a credit stress report following a study it conducted in collaboration with Xpert Decision Systems (XDS). The findings highlight how consumer credit behaviour has changed, pointing to a growing emphasis on cutting back and being more frugal, a trend particularly prominent among Gen Z.

Superbalist’s disposition might be signalling that it was too slow to adapt to this new consumer mindset. In an era where thrifting is “cool” and socially responsible, younger generations are not as interested in the latest designer drops as previous generations were. Thrifting is not just a trend; it’s a movement that reflects a broader shift towards sustainability.

Changing retail landscape: Superbalist faces competition from Shein and Temu

Superbalist’s biggest challenge came in the form of Shein and Temu—global fast-fashion behemoths that have been able to undercut local retailers with their lower prices and enormous range of fashion choices.

South African consumers, facing increasing financial pressure, are understandably drawn to the more affordable options provided by these Chinese retailers. In fact, it was reported by My Broadband that Superbalist’s revenue growth was stifled by these competitors, further pushing Takealot to reassess its position in the local fashion market.

E-commerce Site Merchandising Manager and fashion and retail TikToker Vuyo Mjoli (@retailbyvuyo), a popular voice in the retail space, recently commented on this shift, noting how Superbalist’s heavy reliance on promotional activity signalled trouble. Frequent sales and promotions often indicate that a business is struggling to meet its revenue targets without discounts—a red flag in any retail business.

Gen Z’s Influence and the Rise of Thrifting

While Superbalist was once a trendy destination for fashion lovers, it is clear that Gen Z’s preferences lean towards more affordable and sustainable fashion choices. Second-hand shopping, once seen as a necessity for some, is now an attractive, eco-friendly alternative to fast fashion.

Platforms like Yaga, an online marketplace for pre-loved fashion, have seen tremendous growth in South Africa, with sellers generating over R500 million in sales since its launch in 2020, reports ITWeb. The rise of online thrifting has likely exacerbated Superbalist’s struggles, as fashion-forward young people increasingly turn to second-hand fashion as a means of self-expression and sustainability.

The Superbalist sale also comes at a time when the broader luxury fashion market is facing significant challenges globally.

DailyMail reports that brands such as Burberry have reported profit warnings, with many high-end stores closing their doors. It seems that today’s consumers, particularly the younger generations, no longer find appeal in luxury and designer brands. Instead, the thrill of the hunt at vintage and thrift stores is seen as more valuable, and most importantly, more ethical.

Economic Pressures and South African Consumer Trends

South Africa’s economic landscape is not helping the situation. According to Eighty20’s Q1 Credit Stress Report, South African consumers are feeling the pinch from rising living costs, stagnant wages, and increased interest rates.

Consumers are cutting back not just on luxury items but on essentials like food, with many prioritising basic needs over retail therapy. Even Woolworths, one of South Africa’s most resilient retail brands, has reported a decline in annual earnings, attributing it to the current economic climate, eNCA reports.

For most South Africans, the focus has shifted towards affordability and sustainability, making it increasingly difficult for businesses like Superbalist to thrive.

Takealot’s R252 million loss reflects the larger retail malaise in the country. It’s not just Superbalist that’s struggling—Takealot itself has been unable to turn a profit despite 15 years in operation. High operational costs, increasing competition, and a consumer base facing financial difficulties have all contributed to the group’s financial woes.

Superbalist sale: Lessons for the South African Retail Sector

What can South African retailers learn from the sale of Superbalist? First, the importance of being proactive rather than reactive cannot be overstated. The rise of fast-fashion giants like Shein and Temu, coupled with the growing popularity of thrifting and vintage shopping, means that retailers must be agile and willing to adapt to changing consumer preferences. This includes keeping an eye on global trends, embracing sustainability, and recognising the importance of offering consumers value for money.

Second, competition in the retail sector is inevitable, but it should be viewed as an opportunity rather than a threat. Retailers that embrace innovation, whether through digital transformation, customer engagement, or sustainability initiatives, will be best positioned to navigate the turbulent waters of South Africa’s retail landscape.

Ultimately, Superbalist’s sale is more than just a business transaction – it is a cautionary tale for retailers who fail to anticipate consumer shifts. In an era where consumers are increasingly mindful of their purchasing power, the businesses that thrive will be those that listen, learn, and evolve.