Midrand: AfricUpdate – News Desk
Retail group Massmart has lit up the signage of the first Walmart-branded store in South Africa, confirmed by MyBroadband to be at Fourways Mall in Gauteng. The store marks Walmart’s first branded push into the country, where it already operates through Massmart and its Makro, Game and Builders brands. The US retail giant first acquired 51% of Massmart in 2010, completing its acquisition of the group in 2022. The company was then delisted from the JSE.
Walmart announced plans in September 2025 to start rolling out branded stores for the first time in the country, following Massmart’s long-term struggles with brands like Game. According to MyBroadband, the first Walmart at Fourways Mall will be replacing the Game store that was there previously. More stores are expected to be unveiled in the coming weeks. When Walmart enters a new country, it focuses on low prices, supply chain mastery, and local adaptation to gain market share.
A cornerstone of this strategy is Walmart’s Every Day Low Price (EDLP) philosophy, which aims to attract cost-conscious consumers. South Africa’s retail markets is extremely competitive, dominated by the likes of Shoprite, Woolworths, SPAR and Pick n Pay on the grocery side, and TFG, Mr Price, Pepkor and many others in fashion and other retail. Analysts have noted Walmart’s hit-or-miss performance in emerging markets as a brand, with contrasting results. In some markets, like South Korea and Brazil, it’s gone in big and failed. Others, like India and Mexico, it has adapted and succeeded.
The best outcomes have been where the group strives to be the most local of global companies – where it brings its sourcing might, but moulds itself to local tastes and habits. This is a similar approach taken by another international giant, Amazon, as it moved in to compete against Takealot and others in the online retail space. Speaking to Bloomberg, analysts have noted that Walmart’s decision to beef up its presence in South Africa rather than walk away amid its challenges makes sense, given the numbers.
The country’s online retail sector is growing at an annualised rate of 38% this year to about R130 billion and will capture 10% of the market, after growing 35% last year, according to the Online Retail in South Africa 2025 report. Analysts expect Walmart’s strategy to be aimed at offering lower prices, more food and expanding online.
