South Africa: How Massmart lost ground on retail lead

By Xolisa Phillip, in Johannesburg
Posted on Wednesday, 23 November 2022 13:54

A shopper looks for items at Makro Store Riversands of South African retailer Massmart in Midrand, South Africa, August 28, 2019. REUTERS/Siphiwe Sibeko

Walmart-controlled Massmart, a beneficiary of South Africa’s boom years, will on 22 November 2022 delist from the JSE, signalling failure to capitalise on its retail head start, say analysts. Massmart owns 403 retail and wholesale stores in 13 Sub-Saharan countries. The group’s brands include Game, Makro, Builders, and Jumbo.

Walmart, which now holds 52.78% of Massmart’s shares, in October received shareholder buy-in for a proposal to purchase the balance of the group’s remaining issued share capital. This will enable Walmart to assume full control of Massmart and delist the retailer from the Johannesburg Stock Exchange.