Business
Sub-Saharan Africa Becomes Walmart’s New Battleground
When asked to comment on the indictment, Shoprite spokesperson Sarita von Wyk, replied that the company “is not in a position to comment on the GAME issue as the matter is subject to further legal proceedings.” It is easy to understand why both Shoprite and Massmart are rather hermetic when it comes to making comments that refer to their competitors, as, for example, Massmart´s December 2012 Integrated Report lists the market´s “Competitive intensity” as one of the company´s major risk areas.
The Future
It is easy to understand why both Shoprite and Massmart are rather hermetic when it comes to making comments that refer to their competitors, as, for example, Massmart´s December 2012 Integrated Report lists the market´s “Competitive intensity” as one of the company’s major risk areas.
While the GAME-store court-ruling was a battle won for Shoprite, it seems that the company is well aware that no matter how many stores it may run all over the region, Massmart´s Walmart-style aggressive expansion is going to be very hard, if not impossible, to stop.
Whoever wins the war, the challenge for Shoprite, Massmart and any other grocery chains with a thirst for African expansion today is whether they can integrate and contemplate the needs of local suppliers and distributors in the context of their expansion strategies. It remains to be seen whether this fierce competition will eventually have a truly positive impact on African development.
Copyright AFK Insider 2014
