Online retail sector poised to break R100bn mark by 2026

The courier, express and parcel market is continuing to see robust growth, driven by increasing e-commerce demand, changing consumer preferences, and advancements in logistics technolog y.According to a research report by World Wide Worx, in partnership with Mastercard, Peach Payments, and Ask Afrika, South Africa’s online retail sector surged to R71 billion in 2023. This represents a 29% increase from 2022, positioning the sector to break the R100bn mark by 2026. The 2023 rise comes after 35% growth the previous year took the total to R55bn in 2022.“The strategic shift towards competitive e-commerce offerings and enhanced customer engagement, including sophisticated AI-driven tools, has fundamentally transformed the retail landscape in South Africa,” said Arthur Goldstuck, CEO of World Wide Worx.The shift has, in turn, driven businesses to adapt by enhancing their capacity for rapid and reliable deliveries. According to the South African Express Parcel Association (Saepa), the express parcel industry is now the fastest-growing transport sector in the country.According to Hennie Heymans, CEO of DHL Express sub- Saharan Africa, trends are fast changing and logistics companies need to be positioning themselves now to capitalise on this.“One notable trend is the massive shift from Europe to Asia. South Africa has traditionally been a major trader with Europe, but the rise of Asia needs to be taken into consideration.”The growth of online e-commerce giants like Alibaba, with an estimated market cap exceeding $181bn, has led to a substantial transformation in global commerce and a surge in demand for express courier services.Heymans said the logistics sector was changing, with more companies actively seeking to create more resilient supply chains.“E-commerce has been a steady growth driver for our group in recent years. In our latest strategy, we have announced that we will continue to grow our footprint in the e-commerce market, which is expected to grow at an annual compound rate of at least 7% until 2030.”According to Heymans, the express sector can also benefit from improved intra-regional trade. “The African Continental Free Trade Area (AfCFTA) is one of the biggest opportunities for South African exporters and logistics service providers.”He suggested that more small to medium enterprises should consider expanding their operations across borders within Africa. “Many companies still view this as a risk, and while there are factors to consider, doing business on this continent represents a significant untapped opportunity,” he noted. Currently, DHL Express handles the highest volume of cross-border shipments to Zimbabwe, Namibia, Zambia, Mauritius and Kenya.Heymans said collaborations and strategic partnerships across the supply chain would play an increasingly crucial role in the future. LV