Jumia, the leading e-commerce platform in Africa, is set to combine its 3 operational warehouses in Nigeria into a single, expansive 30,000-square-metre depot located in Lagos.
This strategic move, which is part of Jumia’s broader profitability strategy, was revealed by CEO Francis Dufay during a recent interview. The consolidation aims to achieve significant cost savings by streamlining logistics and improving operational efficiency.
Emboldened by Nigeria’s vast population, which has surpassed the 200 million mark, Jumia is leveraging the nation’s scale to chart a path to profitability—an elusive goal in its financial journey thus far.
In addition to the warehouse consolidation, Jumia is also planning to expand its market to additional countries across West Africa. This expansion is designed to enhance the company’s reach and better serve its growing customer base.
In the first quarter of the year, Jumia reported an operating loss of $8.33 million, despite a modest revenue increase of 5.7%, reaching $48.9 million. This financial performance highlights a stark reality for the company, with its shares plummeting approximately 90% from their peak during the pandemic-driven surge in e-commerce. Speaking at the Qatar Economic Forum in Doha, CEO Francis Dufay emphasized Jumia’s strategic focus on scaling operations to better serve price-sensitive consumers.
This strategic move aims to streamline logistics and significantly cut operational costs. The consolidation will enhance efficiency, improve inventory management, and expedite delivery times, positioning Jumia to better serve its growing customer base in Nigeria.
