American retailer opening new stores in South Africa
New Balance has opened a new store at Somerset Mall in Cape Town, with the American retailer set to open new stores in 2026.
New Balance, which is headquartered in Boston, was founded in 1906 and is one of the largest footwear and apparel companies in the world.
The company employs approximately 10,000 associates worldwide and reported worldwide sales of $7.8 billion in 2024.
It has officially opened a new store at Somerset Mall, which introduces the brand’s latest UCC (Uncommonly Common Concept) experience to the Western Cape.
It added that the store is designed as a people-first space that blends performance, lifestyle culture and authentic community connection.
The store is designed as a people-first space that blends performance, lifestyle culture and an authentic community connection.
Sitting in the newly expanded wing of Somerset Mall, the store offers a significant milestone for New Balance South Africa, as it takes the total number of stores nationally to 16.
It also highlights a strong year of growth for the brand, which opened three new stores in retail space in 2025, adding 650 sqm, representing a 25% increase in retail investment.
The Somerset Mall store offers curated product ranges suitable for both elite athletes and lifestyle consumers.
There is also a dedicated MADE in USA section that highlights the company’s craftsmanship and heritage.
The American retailer is set to add four new stores in 2026 – a 30% increase from its current store footprint.
When it comes to products, the company will also soon launch the 1080v15, which New Balance said contains its most advanced cushioning innovation to date, in January 2026.
Tense times
The expansion of New Balance in South Africa comes despite an increase in tensions between South Africa and the world’s largest economy.
The USA recently skipped the G20 conference in Johannesburg, with Donald Trump’s administration having a poor view of South Africa.
Trump imposed 30% tariffs on South Africa earlier this year. Although deemed reciprocal, the US government examined trade data rather than the actual tariffs that South Africa imposes on the US.
South Africa has also lost access to AGOA, which allowed for duty-free imports into America across a wide range of goods, especially manufactured and agricultural products.
The administration has also repeatedly claimed that South Africa is seeing a genocide directed against white citizens.
While South Africa does have high crime rates, no evidence suggests that white South Africans are being directly targeted in a genocide, and they remain comfortably the wealthiest race in the country.
Nevertheless, US representatives have submitted Bills that look to impose sanctions on senior ANC officials.
Republican Representative Ronny Jackson introduced a bill earlier this year, which called for ANC members to face consequences for their ties to China, Russia, Iran and Hamas.
Despite the troubled relationships, American businesses still seem keen on South Africa.
Walmart opened its first branded store in South Africa, years after acquiring Massmart, the owner of Makro and Game.
Microsoft also recently announced a multi-billion-dollar investment in South Africa, with a specific focus on artificial intelligence.
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