- eCommerce giant Jumia has revealed plans to combine its three Nigerian warehouses into a single 30,000-square-metre depot in Lagos.
- This initiative, which is part of its profitability strategy, was disclosed by its CEO, Francis Dufay, in an interview, stating that the consolidation is aimed at cost savings.
- Also, the company is looking to expand into more cities in Nigeria.
Per Jumia’s Q1 report, the company’s operating loss fell to $8.3 million from 28.4 million in Q1 2023, attributing the performance to significant cost reductions and increased gross margins. It also said it remains committed to reducing losses and working towards cash efficiency and profitable growth.
Besides, the CEO, in the report, said order and average order value (AOV) increased with order growth in its markets, including Nigeria. Thus, he emphasised that the company is off to a strong start, with a key focus on creating a leaner organisation that is ready for growth, among other priorities.
Dufay reportedly mentioned that the company wants to be “sized and organised for significant growth.” He added, “Jumia sees the macro situation in Nigeria as temporary and expects it to turn positive in the medium term.”
Moreover, he acknowledged a challenging macroeconomic environment, including currency depreciation in some of its largest markets, such as Nigeria. Despite the challenges, he stated that Jumia had sufficient inventory and offered a diverse product assortment at competitive prices, keeping customers engaged on its platform.
In another interview at the Qatar Economic Forum in Doha, the CEO stated that the company requires a lean structure to deliver low prices because customers are extremely price-conscious.
“We are also very reactive in pricing as Nigeria remains a huge market for consumer demand, and our business is not stopping,” he reiterated.
In other news, Jumia has partnered with Newedge (Easybuy), a finance company, to allow Nigerian consumers to purchase desired products and make payments over a set period. The initiative is a “Buy Now, Pay Later” model that removes the need for immediate payment.
“This partnership is a testament to our commitment to empowering our consumers and providing them with the tools they need to shop conveniently. We are confident that EasyBuy’s BNPL solution will be a valuable addition to our platform and contribute significantly to the growth of e-commerce in Nigeria,” CEO of Jumia Nigeria, Sunil Natraj, commented.
