US retail giant Walmart has announced that it will open stores under its own brand in South Africa this year.
The world’s largest retailer already owns South African chain Massmart. However, analysts noted that the opening of its branded outlets in the country places it in direct competition with established domestic retailers, including market leader Shoprite, Woolworths, and Pick n Pay.
The move follows Walmart’s first Growth Summit, held in April, which featured manufacturers from 12 countries across the continent and resulted in the recruitment of small and medium-sized suppliers based in Africa.
“Walmart’s South African stores will offer a wide range of merchandise, including fresh groceries, household essentials, apparel and technology,” said Kath McLay, the group’s International President and CEO.
“Walmart also will offer a variety of locally sourced products. By partnering with South African suppliers and entrepreneurs, Walmart will bring its signature Every Day Low Prices and global standards to the market, while celebrating the country’s rich culture.”
Sites for the first stores are already in development and are due to open before the end of the year. Official opening dates and locations will be announced in October. Walmart will also expand its online capabilities in the country, challenging Amazon and market leader Takealot.com.
“By listening and working together, we aim to build lasting relationships and deliver a delightful shopping experience that reflects the needs and aspirations of South Africans,” added Miles Van Rensburg, Massmart President and CEO.
