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Johannesburg - French telecommunications company Orange Group has pulled the plug on its South African phone sales operation – meaning no more cheaper tech gadgets will be sold from their physical shop in Cape Town or the online store.
In 2014, a subsidiary of the French telecoms company, Orange Horizons, opened its physical store as well as an online store in the country. The business quickly became synonymous for selling the latest smartphones and gadgets at highly competitive prices.
But in a statement, the company said on Thursday that the shutdown of the local operation comes amid a strategic decision that was taken on an Orange Group level. Orange added that the decision did not reflect on the specific performance of the unit in South Africa.
READ: Orange store lists top selling smartphones
“As part of the group’s Essentials2020 strategy and given the high level of competition on the group’s major markets such as in France, Orange has decided to focus on its core footprint markets where it is active on the consumer market as a network operator,” Orange said in the statement.
This decision impacts all countries where exploratory activities under the Orange Horizons business unit had commenced such as South Africa, Brazil and European countries like Germany.
Orange Business Services and Globecast, though, will remain in South Africa. Meanwhile, the Orange Top Up offer will also continue to be available locally.
And the Orange Group said it continues to invest in the continent.
READ: Here are the Orange store's top 10 smartphones
“Orange continues to invest heavily in Africa as a whole, which represents an important part of its strategy for international development,” said the company.
“For example, Orange has acquired MNO operations in Liberia, Sierra Leone and Burkina Faso this year.”
“These reflect market opportunities to invest in specific countries that fit within the Group’s overall footprint (mostly Maghreb, West and Central Africa),” the company said.
Any customers whose orders are yet to be fulfilled will be reimbursed in full.
“We have appointed a trusted service partner to assist with any warranty queries following the official seizure of operations. The store already ceased trading and will be utilised for other purposes by the owner of the property,” they added.
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