The retailer, which has had success with branded stores in emerging markets like Mexico and China, is banking on its famed low prices to lure cost-conscious shoppers in the intensely competitive South African market.<\/p>\n\n\n\n
Many shoppers in the country know the Walmart name and expect the new stores to offer cheaper, good quality products.\u00a0<\/p>\n\n\n\n
\u201cSouth Africans are shoppers,\u201d said Babitha Ramnarain, who works at a law firm in Johannesburg\u2019s financial district of Sandton, across from one of Africa\u2019s largest shopping malls.<\/p>\n\n\n\n
\u201cEveryone here is looking for a bargain. So switching to Walmart will depend on price.\u201d<\/p>\n\n\n\n
With the push, Walmart is deviating from its international strategy of exiting low-growth markets. <\/p>\n\n\n\n
The US retailer is sticking with South Africa in spite of losses and a sliding market share in the country where it has so far invested at least R23 billion. Walmart said it believes in the potential of the market.<\/p>\n\n\n\n
Opening its own stores will enable Walmart to focus on low prices and offer global brands, while still partnering with South African suppliers and entrepreneurs, according to Kathryn McLay, chief executive officer of Walmart International. The company declined to provide more details on its plans.<\/p>\n\n\n\n
\u201cUntil now, they\u2019ve carried too many brands, resulting in a lack of synergy,\u201d said Evan Walker, a manager at 36ONE Asset Management Ltd. in Cape Town. <\/p>\n\n\n\n
\u201cBy testing Walmart\u2019s brand recognition in a handful of stores, they can then decide whether to pull the existing Massmart brands under the Walmart brand and try resurrect a new business off the back of that.\u201d<\/p>\n\n\n\n
Walmart\u2019s current push in South Africa comes at a time when the country\u2019s relations with the US are at a low point after President Donald Trump accused it of \u201cwhite genocide,\u201d a claim the government strongly denies. <\/p>\n\n\n\n
The company\u2019s first effort in 2010 to enter the South African market was also a controversial one, with its Massmart deal seen as a test case of the country\u2019s willingness to allow unimpeded foreign investment.<\/p>\n\n\n\n
Walmart took full control of Massmart three years ago and has since been trying to arrest a slump in profit.\u00a0<\/p>\n\n\n\n
Online Growth<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Makro-1-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nHaving operated in South Africa for several years, \u201cWalmart\u2019s learned some valuable lessons about the local market,\u201d said Alec Abraham, an analyst at Sasfin Securities in Johannesburg.<\/p>\n\n\n\n
It has faced formidable domestic rivals like Shoprite Holdings Ltd. alongside hundreds of mom-and-pop style retail outlets that appeal to shoppers because of their locations near transport hubs and in sprawling townships. <\/p>\n\n\n\n
Additionally, it has had to operate on a continent where local economies are regularly weakened by\u00a0splintered politics<\/a>.<\/p>\n\n\n\nBut Walmart has experience in emerging markets. In some, like South Korea and Brazil, it\u2019s gone in big and failed. Others, like India and Mexico, it has adapted and succeeded. <\/p>\n\n\n\n
The best outcomes have been where, as Chief Executive Officer Doug McMillon says, Walmart strives to be the most local of global companies \u2014 where it brings its sourcing might, but molds itself to local tastes and habits.\u00a0<\/p>\n\n\n\n
For Ya\u2019eesh Patel, an analyst with SBG Securities in Johannesburg, Walmart\u2019s decision to beef up its presence rather than walk away is no mystery \u2014 the new strategy is likely to be aimed at offering lower prices, more food and expanding online, he said. <\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nHaving operated in South Africa for several years, \u201cWalmart\u2019s learned some valuable lessons about the local market,\u201d said Alec Abraham, an analyst at Sasfin Securities in Johannesburg.<\/p>\n\n\n\n
It has faced formidable domestic rivals like Shoprite Holdings Ltd. alongside hundreds of mom-and-pop style retail outlets that appeal to shoppers because of their locations near transport hubs and in sprawling townships. <\/p>\n\n\n\n
Additionally, it has had to operate on a continent where local economies are regularly weakened by\u00a0splintered politics<\/a>.<\/p>\n\n\n\n But Walmart has experience in emerging markets. In some, like South Korea and Brazil, it\u2019s gone in big and failed. Others, like India and Mexico, it has adapted and succeeded. <\/p>\n\n\n\n The best outcomes have been where, as Chief Executive Officer Doug McMillon says, Walmart strives to be the most local of global companies \u2014 where it brings its sourcing might, but molds itself to local tastes and habits.\u00a0<\/p>\n\n\n\n For Ya\u2019eesh Patel, an analyst with SBG Securities in Johannesburg, Walmart\u2019s decision to beef up its presence rather than walk away is no mystery \u2014 the new strategy is likely to be aimed at offering lower prices, more food and expanding online, he said. <\/p>\n\n\n\n