The Wallmart Effect

Speedster

Speedster

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With the Massmart / Wallmart deal now all but done, I wonder what effect this will have on the prices of good, especially consumer electronics, in SA. I can imagine that Core's pricing, for one, will come under significant pressure.

(I haven't seen another wallmart thread anywhere, so forgive me if there is already a thread on this topic.)
 
Something odd I just spotted:

listing for walmart.co.za lists that they own walmart.co.za
2a. registrant: Wal-Mart Stores, Inc.
Click to expand...

But the website says something else, or did this bunch recover it for them?
 
ColinR said:
Something odd I just spotted:

listing for walmart.co.za lists that they own walmart.co.za


But the website says something else, or did this bunch recover it for them?
Click to expand...

Well, if you actually took the time to read the website you'd notice the following:
This Internet address is being managed by Melbourne IT DBS for one of the world's top brands. At the present time there is no active Web Site for the address. It may be under construction, or the owner may have reserved the address for future needs.

Enterprises of all sizes rely on Melbourne IT DBS to provide the services and tools needed to manage and protect their online digital assets.
Click to expand...
 
Its Walmart not Wallmart
 
Speedster said:
With the Massmart / Wallmart deal now all but done, I wonder what effect this will have on the prices of good, especially consumer electronics, in SA. I can imagine that Core's pricing, for one, will come under significant pressure.

(I haven't seen another wallmart thread anywhere, so forgive me if there is already a thread on this topic.)
Click to expand...

I've wondered about this and I see it playing out in one of 2 ways.
1. Walmart keeps the Makro and Game branding and their pricing, making huge profit margins because logic says they should be getting the goods much cheaper than Massmart used to.
2. They rebrand and actually open 'Walmarts' around the country, in which case I expect to see some really good opening specials at the very least.
 
hopefully this will open the door to imported electronics, no more scrounging around on bidorbuy for stuff you can't find at stores here!!!!!
 
roLLz said:
I've wondered about this and I see it playing out in one of 2 ways.
1. Walmart keeps the Makro and Game branding and their pricing, making huge profit margins because logic says they should be getting the goods much cheaper than Massmart used to.
2. They rebrand and actually open 'Walmarts' around the country, in which case I expect to see some really good opening specials at the very least.
Click to expand...

In the same way that Massmart did their "grand openings"? They sold off old stock which was almost out of warranty and tended to break within a few weeks. Bleh
 
I'm hoping for some diversity. I am so tired of seeing the same stuff in every shop at the same rediculous price.
 
flarkit said:
In the same way that Massmart did their "grand openings"? They sold off old stock which was almost out of warranty and tended to break within a few weeks. Bleh
Click to expand...

Good point although this is the big 'W' we're talking about so hopefully they'll remove the SA Corporations ethos of shafting consumers because we don't have a choice
 
Speedster said:
With the Massmart / Wallmart deal now all but done, I wonder what effect this will have on the prices of good, especially consumer electronics, in SA. I can imagine that Core's pricing, for one, will come under significant pressure.

(I haven't seen another wallmart thread anywhere, so forgive me if there is already a thread on this topic.)
Click to expand...

What on earth does Walmart have to do with Core?
Core is the exclusive rights to certain brands (Apple and Nintendo) in SA. Walmart has no effect on that
 
We will probably expect an influx of cheap imports that will affect the local market. Wallmart also has strong views against Trade Unions and will probably not allow these unions any kind of say. Salaries for staff will most definitely stay the same. No reason for this to change. Initially not much will change except the instead of recieving locally produced goods, they will import the same/ similar items from countries that can produce it cheaper. This can only happen if the department of trade allows it, as such a change will drastically affect local products, since Massmart has possible the greatest purchasing power in SA. We must also remember as far I as know Wallmart takes a 51% ownership of Massmart.
 
d$k_1 said:
We will probably expect an influx of cheap imports that will affect the local market. Wallmart also has strong views against Trade Unions and will probably not allow these unions any kind of say. Salaries for staff will most definitely stay the same. No reason for this to change. Initially not much will change except the instead of recieving locally produced goods, they will import the same/ similar items from countries that can produce it cheaper. This can only happen if the department of trade allows it, as such a change will drastically affect local products, since Massmart has possible the greatest purchasing power in SA. We must also remember as far I as know Wallmart takes a 51% ownership of Massmart.
Click to expand...

Just btw, the Dept of Trade and Industry are not allowed to enforce any "local procurement quota's" as this will go against SA being a signatory of the WTO....

Walmart has strong views against Trade Unions, yes.. but I think rightly so.. Trade Unions as we have them in this country are NOT helping economic growth at all, they're actually a major roadblock for this country.
 
Link to Broadband and IT related article? Else I don't see this thread belonging here.
 
d$k_1 said:
We will probably expect an influx of cheap imports that will affect the local market. Wallmart also has strong views against Trade Unions and will probably not allow these unions any kind of say. Salaries for staff will most definitely stay the same. No reason for this to change. Initially not much will change except the instead of recieving locally produced goods, they will import the same/ similar items from countries that can produce it cheaper. This can only happen if the department of trade allows it, as such a change will drastically affect local products, since Massmart has possible the greatest purchasing power in SA. We must also remember as far I as know Wallmart takes a 51% ownership of Massmart.
Click to expand...

Most product in Game/Makro are Chinese imports as it is. All WalMart does is to cut out the middleman (importers).

At the end of the day it is the consumer who will win.
 
I think we can expect marginally better prices but not much. Why sell something for really cheap when 1) consumers are used to current prices and 2) there's more profit to be made?
 
JStrike said:
What on earth does Walmart have to do with Core?
Core is the exclusive rights to certain brands (Apple and Nintendo) in SA. Walmart has no effect on that
Click to expand...

Well, if you've ever been in a Walmart you'd know they are big sellers of Apple products. I don't see them buying from Core in SA, so they'll import on their own terms. Hence the pressure in Core's margins.

EDIT: Typo's fixed...
 
Last edited:
Speedster said:
Well, if you've ever been in a Walmart you'd know they are big sellers op Apple products. I don't see them buying form Core in SA, so they import on their own terms. Hence the pressure in Core's margins.
Click to expand...

When you say on their own terms how do they determine what tax they will have to pay?

What is the TAX on items coming in to SA and items coming into the US? How will walmart get around our heavy taxes?

Does game import from china? I thought they bought from the dealers here, so if they sell a sony they are buying it from sony SA surely?
 
Speedster said:
With the Massmart / Wallmart deal now all but done, I wonder what effect this will have on the prices of good, especially consumer electronics, in SA. I can imagine that Core's pricing, for one, will come under significant pressure.
Click to expand...

Because they're good at sourcing products, I would expect to see some reduction in these items. However, the end price will always include import duties and VAT, so you probably won't see amazing prices. Based on Walmart stores in the USA, I wouldn't expect the variety of products to change much (although they tend to have great pricing on DVD's and Blu-rays).

As for affecting Core pricing, doesn't Core have an exclusive license to import Apple products?
 
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