The good, the bad and the ugly by Micaela Flores-Arraoz and Vas Musca

In one of its historically largest purchase operations, American retail giant Walmart bought 51% of South African retailer Massmart in May 2011 by paying US$ 2.4 billion. Massmart sells in 14 African countries, but the majority of its operations are in South Africa (265 retail stores in South Africa versus 25 in the other 13 countries. The Massmart group is based in Johannesburg and includes Game, Dion Wired, Makro, Builder’s Warehouse and Masscash. Walmart’s revenues stand above the US$ 400 billion mark, over South Africa’s GDP of approximately US$ 350 billion. They operate in 14 countries apart from the US, have a procurement division that employs 1,400 individuals, and work with 6,000 factories all over the world but mainly from China.  The transaction reflects Walmart’s clear intention of profiting from the opportunities of a country with a sharp increase in consumer spending power and where the supermarket buying experience reaches almost all socio-economic levels of the population...[more]

Contact through Micaela Florez-Arraoz and Vas Musca through  ’s Industry and Business Unit  industry.business@consultancyafrica.com.