Wal-Mart coming to SA

[DreamKing]

There is a biiiiiig difference between the South African economy... and economies like Germany and South Korea.

Walmart's value is around $196 billion... South Africa's GDP is $277 billion. They could buy out every retail chain here if they wanted to.

Germany's GDP is $3.36 Trillion and South Korea is $929 billion.

They have the muscle power... now it's all a question of strategy.

Walmart is the 60th biggest company in the world.

so that will be the other monopoly, what are the differences?
:wtf:

 

[Voicy]

Keep in mind, they still have to employ african staff. Just look what a bucket of fail that turned McDonalds into...

 

[InTheCube]

Add to that the fact that if you do ask them, you get this :wtf: look.

LMFAO... I can attest to that!

 

[InTheCube]

Keep in mind, they still have to employ african staff. Just look what a bucket of fail that turned McDonalds into...

Yip, even Virgin Mobile promised big things before/at launch and ended up being more-or-less the same as Vodacom/MTN/Cell C. They've been performing pretty poorly so far. A big fail IMO. Now you want to compare how successful the Walton's family is to how successful Richard Brandson is? Any foreign company entering RSA turns out to be a big flop. Our combination of labour laws, unions, price fixing, crime, fraud, bribery, corruption, poorly educated labour force, tax laws, inefficient to non-existant justice system & competition laws/enforcement, etc, will turn any international corporate into crying baby within a few years.

This is Africa. Whatever you've learnt in corporate America, UK, Europe, throw it out the window. The rules are different.

 

[DreamKing]

Yip, even Virgin Mobile promised big things before/at launch and ended up being more-or-less the same as Vodacom/MTN/Cell C. They've been performing pretty poorly so far. A big fail IMO. Now you want to compare how successful the Walton's family is to how successful Richard Brandson is? Any foreign company entering RSA turns out to be a big flop. Our combination of labour laws, unions, price fixing, crime, fraud, bribery, corruption, poorly educated labour force, tax laws, inefficient to non-existant justice system & competition laws/enforcement, etc, will turn any international corporate into crying baby within a few years.

This is Africa. Whatever you've learnt in corporate America, UK, Europe, throw it out the window. The rules are different.

well say

 

[The_Other]

Yip, even Virgin Mobile promised big things before/at launch and ended up being more-or-less the same as Vodacom/MTN/Cell C. They've been performing pretty poorly so far. A big fail IMO. Now you want to compare how successful the Walton's family is to how successful Richard Brandson is? Any foreign company entering RSA turns out to be a big flop. Our combination of labour laws, unions, price fixing, crime, fraud, bribery, corruption, poorly educated labour force, tax laws, inefficient to non-existant justice system & competition laws/enforcement, etc, will turn any international corporate into crying baby within a few years.

This is Africa. Whatever you've learnt in corporate America, UK, Europe, throw it out the window. The rules are different.

SAD but true!

 

[Hosehead]

you have no idea how it works in the retails sector.

the biggest retailers are controlling more than 90% of the suppliers chain locally and internationally. Prices are fixing in certain level and they will do whatever they are do to prevent new players to enter SA market. Want REAL competition? Dream ON.

Wal-Mart is probably China's largest customer so the biggest SA retailers already selling chinese goods won't have a hope in hell in competing with wal-Mart. Either they'll be praying fervently for a buyout or they are crapping their pants.

 

[LazyLion]

McD's have been here forever, still waiting for Burger King.

and Wendy's and Taco Bell and TGI Friday's and Little Ceasar's Pizza and Dairy Queen.... etc.

 

[Hosehead]

Arbys. Musn't forget Arbys. and Sonic and yes, Burger King where are you?

 

[DreamKing]

Wal-Mart is probably China's largest customer so the biggest SA retailers already selling chinese goods won't have a hope in hell in competing with wal-Mart. Either they'll be praying fervently for a buyout or they are crapping their pants.

you think EVERYTHING is from CHINA?

and as I mentioned before, their profit margin is not THAT HIGH, I don't think you can CUT more for profits.......

 

[spiff]

competition in SA??? - get real man!! they just want a slice of good old gullible South African consumer pie!!

 

[Kaleb]

I worked at a Walmart in Miami Florida and I loved it, Im so glad they are bringing one here I just hope its also 24hrs

 

[jimmyj]

the more jobs we have, the more crime will be reduced

 

[Gargmel]

and as I mentioned before, their profit margin is not THAT HIGH, I don't think you can CUT more for profits.......

Then why can we get almost anything online for cheaper from overseas?

 

[waynegohl]

we loved shopping at Wal-Mart and with all the choices we had it was awesome.

Winn-Dixie was also a nice shop.

 

[The_Pumpkin_King]

Johannesburg - After a "stormy" first half, general goods retailer Massmart Holdings has expressed hopes for a turnaround, saying it expects a rise in second-half profit thanks to improving consumer spending and the effects of trading space rollout.

The group has also confirmed that Wal-Mart will enter SA.

Delivering interim results for the six months to end-December, Massmart CEO Grant Pattison said trading conditions in South Africa have improved over the past eight weeks. The group expects to see recovery in gross margins and profit growth in second-half trading.

That was after the group - whose brands include Game, Dion Wired, Makro and Builders Warehouse - reported a 19.9% fall in headline earnings per share and a 15% decline in operating profit (after foreign currency realisations) over the interim period.

"The worst appears to be behind us," said Pattison, describing the interim period as the toughest ever for the group since listing in 2000. "The consumer seems to have turned."

The upturn in the cycle will help the group re-focus on its growth strategy through the acquisitions of successful independent food retailers.

"With the worst behind us, our attention will be on growing market share through great retail innovation and discipline," Pattison said.

"We will be turning our attention from protecting the income statement and balance sheet to gaining market share and productivity."

Pattison also recommitted Massmart to its African expansion plans, saying Angola, Senegal, Côte d'Ivoire and Cameron were some of the new countries in the group's continental growth plans. It wants to export its Game, Makro and Builders Warehouse brands.

"Trading in Africa is difficult, but we will continue with our expansion. The reason is that our business in Africa provides higher margin and returns," said Pattison.

Currently Massmart operates in 14 sub-Saharan African countries, with 290 stores across a portfolio of nine retail brands. Like food giant Shoprite Holdings, Massmart has been on a continental growth spree despite logistical challenges and weaker currencies to the rand.

Massmart directors also confirmed that global retail giant Wal-Mart planned to enter the South African market, posing a serious competition for the group.

Massmart's chief financial officer Guy Hayward said Wal-Mart was "shopping around" and held talks late last year with the country's major retailers, including Massmart, and then visited the country again just a week ago.

Analysts have previously suggested that Massmart was the Wal-Mart's primary target given its Massmart model perfectly fits with that of Wal-Mart.

- Fin24.com

http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-24_2573688

OK people, apparently the article had some inaccuracies, heres a new article from fin24

Johannesburg - After a "stormy" first half, general goods retailer Massmart Holdings has expressed hopes for a turnaround, saying it expects a rise in second-half profit thanks to improving consumer spending and the effects of trading space rollout.

Delivering interim results for the six months to end-December, Massmart CEO Grant Pattison said trading conditions in South Africa have improved over the past eight weeks. The group expects to see recovery in gross margins and profit growth in second-half trading.

That was after the group - whose brands include Game, Dion Wired, Makro and Builders Warehouse - reported a 19.9% fall in headline earnings per share and a 15% decline in operating profit (after foreign currency realisations) over the interim period.

"The worst appears to be behind us," said Pattison, describing the interim period as the toughest ever for the group since listing in 2000. "The consumer seems to have turned."

The upturn in the cycle will help the group re-focus on its growth strategy through the acquisitions of successful independent food retailers.

"With the worst behind us, our attention will be on growing market share through great retail innovation and discipline," Pattison said.

"We will be turning our attention from protecting the income statement and balance sheet to gaining market share and productivity."

Pattison also recommitted Massmart to its African expansion plans, saying Angola, Senegal, Côte d'Ivoire and Cameron were some of the new countries in the group's continental growth plans. It wants to export its Game, Makro and Builders Warehouse brands.

"Trading in Africa is difficult, but we will continue with our expansion. The reason is that our business in Africa provides higher margin and returns," said Pattison.

Currently Massmart operates in 14 sub-Saharan African countries, with 290 stores across a portfolio of nine retail brands. Like food giant Shoprite Holdings, Massmart has been on a continental growth spree despite logistical challenges and weaker currencies to the rand.

Massmart's chief financial officer Guy Hayward confirmed widespread speculation that Wal-Mart had been "shopping around" late last year.

Analysts have previously suggested that Massmart was Wal-Mart's primary target given its Massmart model perfectly fits with that of Wal-Mart.

Commenting on the prospect of being bought by Wal-Mart, Hayward said that the company's directors would act in the best interests of Massmart shareholders. - Fin24.com

Thanks to the person who PM'd me

 

[DreamKing]

Then why can we get almost anything online for cheaper from overseas?

do you know how much "duties" and related charges you were charged in SA? (thanks to our beloved government and transnet )

do you know what is the “quantity” of the overseas sellers? (it is very important for the profit margin)

 

[Hosehead]

How is having Walmart here going to create lots of jobs?

They will, like the American Model have in store greeters wearing special bibs. Most of these greeters vocabulary will be limited to "Eish" and "no"

 

[Kornhub]

Reminds me of a South Park episode

 

[OhGats]

Game is already like Wally World, they just need to change the signage. Massmart has too many fingers in the retail trade, there is not enough competition to benefit the consumer.