Business9.10.2025

Secret Makro plan in South Africa

Massmart has been quiet about its plans to convert its Game stores located in malls to small-format Makro stores.

The company recently announced the upcoming launch of the first Walmart stores in South Africa and said it would consider developing both new and existing sites where appropriate.

MyBroadband asked Massmart for an update about its plans to convert in-mall Game stores into small-format Makro outlets, but it hadn’t answered our questions by the time of publication.

Massmart first revealed its plans to convert four existing Game stores inside malls to small Makro outlets in April 2024.

Group corporate affairs head Brian Leroni said the plan was for the Makro outlets to replace these Game stores.

“They will be situated in the Game store site, but the stores will be merchandised and branded as a small concept 3,000-square-meter Makro store,” he said.

“We would like to emphasise that our objective is to make Makro stores more accessible to a wider market through a small, mall-based Makro store concept.”

At the time, he said the concept’s development was at an advanced stage and had been tested with various focus groups.

However, the project stalled thereafter. In subsequent updates following the initial announcements, Massmart said the project was “progressing well”.

It also said it would invite some partners to preview the stores before they open. It never revealed where the pilot stores would launch, despite saying it would announce the locations.

Then, in early September 2025, Walmart, the parent company of Massmart, announced its plans to open its first branded stores in South Africa.

It said the move underscored its commitment to making high-quality, affordable merchandise accessible to more customers.

Walmart International President and CEO Kath McLay said the South African stores will offer a wide range of products, including groceries, household essentials, apparel, and technology.

It will offer a variety of locally sourced products, including those from small and medium-sized suppliers it secured during the Walmart Growth Summit in South Africa in April 2025.

Not a replacement for Game or Makro

The first Walmart Spark (Walmart’s logo) put up in a Walmart store on South African soil

Following the announcement that Walmart would launch stores in South Africa, MyBroadband enquired about Massmart’s plans for the country.

Massmart said Walmart will be included under its existing business portfolio as an additional trading banner. This means it won’t replace any of Massmart’s existing brands: Builders, Game, and Makro.

“Our focus is on delivering an Every Day Low Price proposition that is in contrast to a Hi-Lo promotional approach to pricing,” it said.

We also asked whether the plans to convert in-mall Game stores were related to the upcoming Walmart launch.

“We will consider developing both new sites, and where appropriate, sites in our existing real estate portfolio,” Massmart said.

Walmart has been successful in emerging markets, such as Mexico and China. It is banking on its renowned low prices to lure cost-conscious South African shoppers to its stores.

Many South African shoppers are familiar with the Walmart name and expect the stores to offer affordable, high-quality products.

Speaking about the upcoming launch, Babitha Ramnarain, practice manager at Johannesburg law firm TKCL, said that South Africans switching to Walmart will depend on its product pricing.

“South Africans are shoppers,” she said. “Everyone is looking for a bargain. So switching to Walmart will depend on price.”

Evan Walker, a manager at 36ONE Asset Management in Cape Town, said Walmart was testing its brand recognition through a handful of stores.

“They can then decide whether to pull the existing Massmart brands under the Walmart brand and try resurrect a new business on the back of that,” he said.

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