Retail group Massmart is negotiating a deal to take control of logistics, multi-store, online shopping marketplace OneCart.
The JSE-listed company cautioned shareholders today, advising them that Massmart is in discussions with OneCart, which is also a logistics platform that partners with leading retailers in SA to enable fast, flexible, efficient online sales and home delivery.
The local e-commerce sector has been on an upward trajectory in the last 18 months, as COVID-19 continues to drive consumers to online shopping.
The pandemic has fundamentally changed the role e-commerce plays in SA’s retail sector, fuelling a dramatic increase in the uptake of online shopping.
Consequently, Massmart says OneCart will be a perfect fit for its e-commerce strategy.
“In keeping with the company’s strategy to invest in and accelerate its e-commerce presence, this potential acquisition will allow the company to further expand its capabilities in the fast-growing on-demand delivery segment, while continuing to support the independent retailer marketplace model of OneCart.
“The platform provides access to products across the dry grocery, frozen and fresh foods, liquor, baby, health and beauty, household and pet supplies categories, all made available to consumers via a single shopping interface.”
The Gauteng-based start-up was established by partners Lynton Peters and Ariel Navarro in 2017, and counts leading retailers such as Woolworths Food, Pick n Pay Food, Dis-Chem and Clicks as clients.
Massmart advised shareholders that negotiations have progressed and it is currently in the process of finalising transaction documentation.
“Negotiations are at an advanced stage and Massmart is hopeful to conclude discussions in the coming weeks, pending finalisation of a few key matters.”
Accordingly, Massmart advised shareholders to exercise caution when dealing in its securities until a further announcement is made.
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