Walmart, one of the world’s largest retail chains, is preparing to launch its first Walmart-branded stores in South Africa by the end of the year, the company stated in a press release.
The new stores, already in development, will offer South African consumers a range of products, including fresh groceries, household essentials, clothing, and electronics. The move marks a strategic shift for the US retail giant, which has primarily operated in South Africa through Massmart Holdings, a local retail group it acquired a majority stake in back in 2011.
Walmart initially invested 16.5 billion rand (approximately $945 million) to buy into Massmart, hoping to capitalise on the continent’s rising consumer demand. However, the deal faced resistance from local competition authorities, which required Walmart to make various commitments to support local development.
Since then, the company has struggled to gain a dominant foothold in the South African market, facing stiff competition from established local retailers and more recently from global players like Amazon and Shein.
In 2022, Walmart took full ownership of Massmart, taking it private in an effort to streamline operations, reduce costs, and invest more effectively. That move, according to Walmart, provided the flexibility needed to revive the business and prepare for broader expansion.
With the opening of its own branded stores, Walmart hopes to directly deliver on its promise of low prices and access to global brands, while continuing to work with South African suppliers and entrepreneurs. Kathryn McLay, CEO of Walmart International, said the new stores will complement existing Massmart-owned brands such as Makro and Builders Warehouse, rather than replace them.
This expansion comes despite broader geopolitical tensions and cooling US–South Africa relations in recent years. Walmart’s renewed investment signals its long-term commitment to the region and its belief in the growth potential of South Africa’s retail market.
