The world-largest retail stores Walmart will debut its first in-person retail stores in South Africa before the year 2025 runs out. The US-based retailer—known for its “everyday low prices in thousands of its stores worldwide—is one of the biggest e-commerce platforms known for selling affordable household groceries, electronics, and apparel at scale.
However, it's worth noting that this is not the first move of Walmart in South Africa. The company has been investing in the country's retail market through Massmart—a South African retail and wholesale group that operates a range of stores, including general merchandise, liquor, home improvement, and wholesale food outlets.
In 2010, Walmart invested in Massmart and later took full ownership, allowing the US retailer to operate through brands including Makro and Builders in South Africa. However, bring Walmart as a separate brand to the country is tied to a mix of strategic and market-driven reasons in such that:
- South Africa remains the gateway into Africa for foreign retailers. The country is the continent’s most developed retail market, with modern infrastructure, a strong financial system, and established supply chains. So, it’s a logical entry point for scaling into other African economies.
- South Africa has a population of over 60 million, with a growing middle class consumers that values both affordability and access to global retail brands. Walmart sees long-term potential despite short-term economic challenges.
- Like I said earlier, partnership through Massmart has given Walmart more visions about how South Africa retail market looks like. With the acquisition of majority stake in Massmart, the company already has a foothold. So, expanding its original stores directly strengthens its control over operations and brand visibility, rather than relying on local banners.
- In addition to that, South Africa is a retail emerging market where consumers demand continues to rise everyday by day. So, as U.S. and European retail markets are relatively saturated with established retail stores like Amazon, BestBuy, Shein, Costco, Stop & Stop, ShopRite, Old Navy, HomeGoods, Temu, Dollar Tree, and many others, Walmart is turning to emerging markets where consumer demand is still rising and no much competition.
Although, it's important to note that global rivals—like Shoprite, Temu, Amazon, and Pick n Pay—have already dominated the South African retail market. But Walmart believes it can bring its global scale, procurement power, Massmart’s local footprint, and low-cost strategy to cement its African presence, tap into long-term consumer growth, and win over budget-conscious shoppers.
How Walmart Intends to Operate in South Africa
Walmart International President and CEO—the person of Mrs Kath McLay—made it clear that Walmart is going to operate in South Africa by opening a new stores on Walmart names and stocking the stores with fresh groceries, household products, clothing, and technology and electronics appliances. She added that Walmart will partner local manufacturers, suppliers, and entrepreneurs to offer locally produced goods and services.
The South Africa Walmart stores will be fresh and family-friendly, with a modern look and smart digital features that make shopping seamless for consumers. The stores will also bring together well-known global names and trusted local favorites. The launch comes at a time when households are under strain from rising inflation and a weak rand.
Walmart is betting that its mantra of “everyday low prices” will resonate with consumers who are struggling to stretch their budgets. Details on store locations, recruitment, and community projects will be announced in October. What is clear for now is that Walmart is no longer staying in the background. It is laying down its mat. Good luck to everyone involved.
As Rivals Exit, Walmart Sees Its Moment in South Africa
Walmart entered South Africa in 2010 by investing in Massmart and later took full control, operating through brands like Makro and Builders. Now, the company is preparing a fresh push into the market with its own stores.
The South African retail market has changed quickly in recent years. Shoprite has existed Nigeria and several other African markets, Jumia shut down operations in late 2024. In fact, Jumia brought down its online fashion retailer Zando in the same year.
However, as Jumia is existing the market, Amazon launched in South Africa the same year. Not quite long to that time, Temu expanded into South Africa with local warehouses to speed up deliveries.
But for Walmart, it's been in the system since 2010 with the acquisition of Massmart. However, brining it own stores directly to South Africans is at the time when both opportunity and risk are involved. On one hand, its size and supply chain strength could give it an edge in both physical and online retail. On the other, South Africa is fighting inflation, a weak/depreciating currency, and limited household spending power.
That’s where Walmart’s low-price model fits in. The company thrives globally by selling cheap and affordable essentials. You know, cheap goods and products are things local families need now more than ever. Walmart is already planning its stores and where they'll be located in South Africa. The company is expected to reveal more about locations, jobs, and community initiatives later this year.
