Walmart, the world’s largest retailer, is set to open its first branded stores in South Africa by the end of 2025 – a move that could reshape the country’s retail sector.
While the move has sparked excitement and some concerns about competition, small, medium, and micro enterprises (SMEs) are uniquely positioned to benefit if they can meet Walmart’s standards.
Announcing the launch, Kath McLay, Walmart International President & CEO, highlighted the company’s twin goals of affordability and local inclusion.
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“Walmart’s South African stores will offer a wide range of merchandise, including fresh groceries, household essentials, apparel and technology. We will also offer a variety of locally sourced products,” McLay said.
“By partnering with South African suppliers and entrepreneurs, Walmart will bring its signature Every Day Low Prices and global standards to the market, while celebrating the country’s rich culture.”
Her comments underscore that Walmart is not entering South Africa as a foreign disruptor alone but as a partner seeking to integrate local suppliers into its massive value chain.
Industry experts believe Walmart’s arrival was “only a matter of time”.
Alec Abraham, Senior Equity Analyst at Sasfin Wealth, noted that while the Walmart brand will attract attention, sustaining momentum is key.
“This move was probably inevitable. Like any new entrant, there will be an initial excitement with people wanting to see what the offering is like,” Abraham said.
“Then it will be up to Walmart to see if they can sustain that initial footfall once everyone has checked out what they are offering.”
For SMEs, this means their products could enjoy an initial boost if stocked in Walmart stores, but long-term success will depend on delivering consistent quality and aligning with consumer expectations.
Some South African SMEs are already getting a taste of what it means to work with Walmart.
Family-owned business Glenart, a Christmas cracker manufacturer based near Ballito in KwaZulu-Natal, recently secured a supply deal with Walmart.
“It is a coup for the company to gain access to Walmart’s home market,” said Glenart’s director, Miles Rasmussen.
This early success shows the potential for local SMMEs to gain access to Walmart’s global supply chain, provided they meet quality and consistency standards.”
Miles van Rensburg, CEO of Massmart, shared this sentiment for Walmart’s South African subsidiary.
“Every rand matters when it comes to price. It is this balance and mindset on quality and Every Day Low Prices that enables us to deliver and build customer trust,” he explained.
Azwi@vutivibusiness.co.za
