Walmart to open namesake stores in South Africa this year

Walmart, the sole owner of South African retailer Massmart, plans to open Walmart branded stores in South Africa later this year. The retailer noted the action at its first Growth Summit in Sub-Saharan Africa in April.

The event featured suppliers from 12 African countries with innovations and products that are made, grown, or assembled in Africa. Walmart said the event resulted in the recruitment of small- to medium-sized African-based suppliers.

“Walmart’s South African stores will offer a wide range of merchandise, including fresh groceries, household essentials, apparel and technology,” said Kath McLay, CEO of Walmart International.  “Walmart will also 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.”

With sites already in development, Walmart said the new stores are set to open before the end of the year. The official opening dates and location details will be released in October. Walmart said its business in South Africa will include online commerce.

Walmart acquired a 51% interest in Massmart in 2011 for $2.3 billion. But in August 2023, Walmart purchased the outstanding shares for $377.6 million, giving it full ownership over the business. Civil unrest throughout areas of Africa and a volatile economic climate over the years had Walmart re-evaluate its business interests on the continent in 2019. Several management changes and a slow build-out for stores in underserved countries ensued.

Walmart brought in new Massmart management in March, with Miles Van Rensburg becoming CEO, the fourth CEO in six years. Massmart announced in June three more executive changes for its Makro, Game, and Cash & Carry businesses.

Walmart/Massmart owns and operates 302 retail units in Africa under the Builders, Cambridge, Cash & Carry, Jumbo, Makro and Rhino store banners. Builders is based in South Africa and is a home improvement and materials company that operates warehouses, express and superstore formats at 120 locations.

Game is a discount retailer that focuses on appliances, electronics, lifestyle merchandise, groceries, liquor and some services. There are 113 Game stores in Africa, 100 of which are in South Africa. The Makro stores are similar to a Sam’s Club format, selling food, liquor and general merchandise to retail and wholesale customers. There are 23 Makro locations, all of which are in South Africa.

There are 37 Cash & Carry stores in the country, 27 in South Africa with other locations in Botswana, Eswatini, Lesotho, Namibia and Zambia. Like Makro, the Cash & Carry format sells food and general merchandise for commercial and wholesale customers. There are 7 Jumbo stores in South Africa that sell clothing, food and consumer goods.