Thursday, March 03, 2011

Changes in South African Retail

The South African retail environment is set to change over the next 5 years and that change is going to be driven largely by Massmart and their competitor’s reaction to their post Walmart strategy. Already every retailer has been asked the question, “How is the Walmart in SA going to impact on your business”. That is a very difficult question to answer when you are not sure how Massmart will change.

Walmex (Walmart Mexico) has been a successful model in an emerging market for Walmart and the management team at Massmart will be encouraged to follow a similar strategy by their American partner. Walmex has expanded successfully into Central America from a dominant position in the Mexican market and one can reasonably assume that the South African team will endeavour to follow the same path.

The key difference in South Africa is that Massmart don’t dominate the local food market and will need to grow a significant food business in a market dominated by a few major players. This will present a challenge that will not be easy to overcome. Already Massmart have pursued each of the independents successfully and the purchase of Rhino will all but close the book on growth by acquisition. Perhaps the competition commission would have a different view on Massmart purchasing Fruit and Veg City than it did to the proposed Pick n Pay buy out. That may be farfetched but it would certainly throw a cat amongst the pigeons.

I don’t believe that suppliers are going to be adversely affected by Walmart’s purchase of Massmart and I certainly don’t believe that factories will be closing left, right and centre. Prospects for suppliers may even improve through Massmarts projected growth in food retail. In all markets a retailers priority is to source locally wherever possible and it is unlikely that that will change. Manufacturers require efficient routes to market to be successful, a growing Massmart with multiple store formats would provide that as well as access to markets that have previously been difficult to supply directly.

To get an idea of how Massmart may look in a couple of years have a look at the Walmex site. It looks remarkably similar to what Shoprite have done in Africa, without an American friend and hats off to them for that!


BRAND NEW
I&J Fish Fingers
New 600g pack size for the nation’s original favourite fish finger!
read more
New I&J Oven Crunch
Crisp & Crunchy 100% I&J Hake fillet portions – at an affordable price!
read more
Pioneering Whisky born from 2010’s “Great warehouse collapse”
Glenfiddich, the world’s most awarded single malt Scotch whisky, recently announced the launch of Snow Phoenix - a unique whisky born of chance and adversity which commemorates a moment of drama in Glenfiddich’s long history.
read more

22 comments:

Anonymous said...

Thanks on your marvelous posting! I really enjoyed reading it, you're a great author.I will make certain to bookmark your blog and may come back later on. I want to encourage yourself to continue your great job, have a nice weekend!

Also visit my website: http://okoo.Net/CassandraO
My webpage :: Page not found | grants.kidsgardening.org

Anonymous said...

Great article, totally what I was looking for.

my blog post ... windows web hosting
Also see my website :: web hosting linux

Anonymous said...

You should be a part of a contest for one of the best blogs on the net.
I am going to highly recommend this site!

my blog post; credit card affiliate
my webpage > making money as an affiliate

Anonymous said...

I always spent my half an hour to read this web site's content every day along with a cup of coffee.

Also visit my site: greek island vacation

Anonymous said...

hello!,I love your writing so so much! proportion we keep in touch more about your article
on AOL? I need an expert in this area to unravel my problem.
Maybe that's you! Having a look forward to look you.

Review my web page - current student loan interest rate

Anonymous said...

Please let me know if you're looking for a article author for your site. You have some really good articles and I believe I would be a good asset. If you ever want to take some of the load off, I'd absolutely love to write some content for your blog in exchange for
a link back to mine. Please shoot me an email if interested.
Regards!

my web page - online katalog kleidung

Anonymous said...

What's up, this weekend is fastidious designed for me, for the reason that this point in time i am reading this fantastic educational post here at my residence.

Feel free to surf to my web-site: marken outlet online shops

Anonymous said...

Wonderful items from you, man. I've be aware your stuff previous to and you are just extremely excellent. I actually like what you have bought right here, certainly like what you're saying and the way in which by which you are saying it.

You are making it enjoyable and you continue
to care for to keep it wise. I can not wait to read far more from you.
This is really a tremendous site.

My website - products affiliate

Anonymous said...

Hi there! This blog post could not be written much better!
Reading through this post reminds me of my previous roommate!

He always kept talking about this. I am going to forward this
information to him. Pretty sure he's going to have a great read. Thanks for sharing!

my blog: loan with bad credit
Also see my webpage :: home equity finance

Anonymous said...

You're so cool! I do not believe I've read through
anything like that before. So great to find someone with some original thoughts
on this topic. Really.. thanks for starting this up.
This site is one thing that's needed on the web, someone with some originality!

Feel free to surf to my page private krankenversicherung selbststäNdige

Anonymous said...

It's really a great and helpful piece of information. I'm happy
that you shared this helpful information with us. Please stay us up to
date like this. Thanks for sharing.

Also visit my site ... private pflegeversicherung vergleich

Anonymous said...

Hi to every single one, it's actually a nice for me to pay a quick visit this website, it includes precious Information.

My web-site; student loan refinance companies

Anonymous said...

It is appropriate time to make some plans for the future
and it's time to be happy. I have read this post and if I could I desire to suggest you few interesting things or advice. Maybe you can write next articles referring to this article. I desire to read even more things about it!

my web-site - bad credit home loan

Anonymous said...

Wow, awesome blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your web
site is excellent, as well as the content!

Review my blog: markenmode günstig online

Anonymous said...

Hi to all, it's truly a good for me to go to see this web page, it consists of precious Information.

Here is my web site :: best place to get a private student loan

Anonymous said...

I do not even know the way I ended up right here, however I assumed this publish used to be great.
I do not understand who you're however definitely you are going to a famous blogger when you aren't already.
Cheers!

Also visit my web-site - bad credit Refinancing
Also see my website: refinance bad credit

Anonymous said...

What's up, I check your blogs daily. Your humoristic style is awesome, keep it up!

Also visit my weblog: bad credit home mortgage lenders

Anonymous said...

Woah! I'm really enjoying the template/theme of this blog. It's simple, yet
effective. A lot of times it's hard to get that "perfect balance" between user friendliness and visual appearance. I must say that you've done a very good job
with this. In addition, the blog loads extremely quick for me on Chrome.

Outstanding Blog!

My website ... Clickbank Review Site
Also see my website > reliable reseller hosting

Anonymous said...

Hey! I just wanted to ask if you ever have any problems with hackers?

My last blog (wordpress) was hacked and I ended
up losing several weeks of hard work due to no backup. Do
you have any solutions to prevent hackers?

Visit my weblog - 5 star all inclusive resorts

Anonymous said...

Unquestionably imagine that which you stated. Your favourite reason seemed to be at
the net the simplest thing to understand of. I say to you, I
definitely get annoyed while other people consider issues that they just do not realize about.
You controlled to hit the nail upon the highest and also
outlined out the entire thing with no need side effect , other people can take a signal.
Will probably be back to get more. Thank
you

Review my webpage ... beamten krankenversicherung vergleich

Anonymous said...

I am sure this article has touched all the internet viewers, its really really pleasant piece of writing on building up new blog.


Feel free to visit my blog post :: low cost startup business ideas

Anonymous said...

Duperre super-site! I'm loving it! ' Will come back once again - having you to eat, give Thanks.


Feel free to surf to my weblog :: fashion outlet online shop