I was recently asked whether I felt that the closure of the four online shopping portals — SA Camera, Style36, 5 Rooms and Kinderelo — by media giant Naspers, was an indication that South Africa was not yet ready for online retail and that there was no money to be made in the industry. My answer was immediately confirmed by a Naspers announcement that its intentions were to restructure to focus on its general online store, Kalahari.com.
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That’s not to say online retail in South Africa doesn’t present its fair share of challenges. In its report for the year ending 31st March 2013, Naspers reported trading losses of R1.8 billion in its online retail portfolio.
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