Jumia Technologies – New Policies to Reduce Losses
Jumia has made a deal to sell French retailer Leroy Merlin’s tools and do-it-your-self products in West Africa, as part of a plan to expand its reach and cut losses in half by the end of 2023. Leroy Merlin is a French company which has been expanding into Africa rapidly over the last decade. Jumia will sell Leroy Merlin’s products in Ivory Coast and Senegal, focusing on high-growth rural areas and smaller cities. More than half of Africa’s 1.4 bn population lives outside big cities or in rural areas where the economies are driven by agriculture which enforces the argument that there will be strong demand for the kinds of products Leroy Merlin offers in areas that are not well-served by retailers. The question will be how does Jumia overcome the logistics challenges to deliver outside major conurbanisations? This has caused problems in the past, and it is noticeable that the first phase of this project avoids countries with major transport infrastructure issues, like DCR or Nigeria.
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