A Walmart employee works during a preview of the first South African Walmart store at Clearwater Mall in Roodepoort, South Africa. (Photo by Per-Anders Pettersson/Getty Images)
Per-Anders Pettersson
The first Walmart store to carry the company’s own name has begun trading in South Africa, marking a new chapter in the U.S. retail giant’s long-running, and sometimes bumpy, relationship with the African continent.
The store, located at Clearwater Mall, Roodepoort on Johannesburg’s western side, has been conceived as what the company dubbed a compact expression of the group’s global formula, with a broad range of groceries, chilled and frozen foods, plus an edited mix of apparel, household goods, electronics and toys.
Its selection has been tailored to South African habits and seasons, ranging from Heritage Day fare to summer braai provisions and back-to-school staples.
Although the signage above the door is new, Walmart is no stranger to the country. Its arrival dates back to 2011, when it bought a majority stake in Massmart, the Johannesburg-listed retail group that operated a number of chains including Game, Makro and Builder’s Warehouse.
The deal was pitched as Walmart’s gateway to African growth, but the group’s integration proved more difficult than anticipated. Economic stagnation, rising operating costs and fierce local competition weighed on Massmart’s results. After years of losses, Walmart eventually took the company private in 2022, clearing the path for a more hands-on restructuring and opening the door to a fresh retail format bearing its own brand.
Walmart Renews Africa Push
Walmart executives described the debut store as a demonstration of renewed commitment to the market and an attempt to deliver stable, low prices without the promotions-led tactics common in South African retail.
Early features include an express delivery service promising orders within an hour for customers living close by, as well as a mix of international toys, beauty lines and confectionery influenced by Walmart’s global buying program, alongside locally familiar frozen convenience foods.
The launch follows Walmart’s inaugural Growth Summit in April, a sourcing event that drew suppliers from across the continent. Several small and medium-sized firms identified there will now supply the Clearwater outlet, and Walmart says about 80 jobs have been created at the store itself.
Walmart acquisition of the South African Massmart group in 2022, before rolling out its first Walmart-branded stores. (Photo by Per-Anders Pettersson/Getty Images)
Per-Anders Pettersson
Rather than pursuing large-scale continental rollouts, the retailer appears to be testing whether its core brand, backed by integrated logistics and a sharpened value proposition, can compete directly in South Africa’s concentrated retail landscape.
Additional sites are reportedly in development, suggesting that Clearwater may be the first step in a more measured attempt to rebuild momentum in a region that once loomed large in Walmart’s global aspirations.
“Opening this first Walmart store in South Africa is about much more than a business milestone. It is a commitment to helping customers save money and live better by consistently delivering the lowest total cost for the basket of products they need,” said Andrea Albright, executive VP and chief growth officer for Walmart International and operating partner, Massmart.
“We’re delivering quality without requiring customers to wait for short-term promotions or worry about fluctuating prices,” she added.
Walmart Earnings, Ticker And CEO
Despite tariff issues, Walmart raised its sales and earnings outlook last Thursday as the retailer said that it expects full-year net sales to climb between 4.8% and 5.1%, up from its previous expectations of 3.75% to 4.75%, with adjusted earnings per share ranging from $2.58 to $2.63, also revised slightly up.
It marked the second quarter in a row that Walmart hiked its full-year forecast and the latest earnings report was the first since the Arkansas-based company announced a leadership change, with John Furner, the CEO of its U.S. business, to succeed longtime CEO Doug McMillon on Feb. 1.
Walmart Inc. last week also announced it will transfer the listing of its common stock to the Nasdaq, reflecting its increasing technology focus, and it expects to begin trading on the Nasdaq Global Select Market on Dec. 9 under its current symbol WMT.