This page narrating the new development Jumia move to Unifying three warehouses in Lagos to help Nigerians in currency volatility and soaring living expenses.
Dufay’s recent interviews
In the statement of Chief Executive Officer, Francis Dufay, says in a recent interview with Bloomberg that the company’s consolidation initiative is primarily driven by a concerted effort to cut cost, a pivotal step in Jumia’s quest for profitability. Jumia moves to Unifying three warehouses in Lagos is engulfed in its bets in Nigeria, as it said the country’s macroeconomic situation is temporary.
In addition, Dufay acknowledging the inherent risks facing Nigeria economic backdrop characterized by currency volatility and soaring living expenses, maintained a sanguine outlook, and asserting.
What to know about the new development by Jumia
The first quarter of the year saw an operating loss amounting to $8.33 million for the company, juxtaposed with a modest uptick in revenue which rose by 5.7% to reach $48.9 million.
Moreover, this performance delineates a stark reality, with Jumia shares plummeting by approximately 90% from its zenith during the pandemic-induced surge in e-commerce reliance.
Speaking at the Qatar Economic Forum in Doha recently, Dufay elucidated Jumia’s strategic imperatives, emphasizing the need for scaling operations to cater to price-sensitive consumers.
“We know that customers are heavily price-conscious,” Dufay iterated, elucidating the necessity for a lean operational framework to deliver competitive pricing across all facets of service provision.”
More insights
In addition, Jumia remains undeterred and buoyed by prospects of an economic recovery catalyzed by governmental initiatives aimed at reducing inflationary pressures and attracting foreign investments.
Amidst prevailing challenges such as currency devaluation and infrastructural deficiencies, the company remains steadfast in its commitment to consolidating its market presence.
Strategically conserving its cash reserves, Jumia has also tried to enhance customer accessibility by introducing a buy-now-pay-later financing option.
“We are also very reactive in pricing,” Dufay affirms”
Jumia on its commitment to Nigeria, navigating the labyrinthine contours of its economic waters. In addition, the company’s strategic calculations, embody a delicate balance between risk and opportunity, showing its resolve to chart a trajectory towards sustained profitability in Africa’s largest economy.