Walmart has made its boldest move yet in South Africa’s fiercely contested grocery sector, launching a 60-minute delivery service that puts it in direct competition with the country’s dominant player in on-demand retail, Checkers Sixty60.
The US retail giant opened its first store at Clearwater Mall on Wednesday before its public launch on Saturday, signalling it intends to challenge the Shoprite Group not only in-store but also in the rapidly expanding quick commerce space, where the Sixty60 service has set the pace.
Walmart, which owns Game and Makro’s parent company, Massmart, made it clear it is targeting the same convenience-driven, middle-to-higher-income shoppers that have fuelled Checkers and the rise of Sixty60.
The rivalry also extends to Woolworths, which caters to the same market, and Pick n Pay, which has seen some troubled times but is taking steps to recover, while Spar continues to launch its Gourmet stores to cater to the top of the income table.
Walmart is entering the market as food inflation has become the biggest issue for most South African households. Grocers are being measured not just on price but also on their commitment to helping families survive the rising cost of living.
Stats SA’s latest CPI numbers show that consumer inflation rose to 3.6% in October, the highest level in more than a year. That’s up from 3.4% in September even though core inflation, which excludes volatile energy and food prices, dropped to 3.1%.
Still, the Arkansas-based retailer’s local strategy goes beyond convenience, according to Massmart COO Dries D’Hooghe. Walmart is preparing for a price war that is reshaping South Africa’s grocery sector, in which Shoprite, owner of Checkers, Shoprite and Usave, has built a formidable reputation for supply-chain efficiency, an aggressive value proposition and technological leadership.
Watch Massmart COO Dries D’Hooghe:
Clearwater Mall is the first of two Gauteng stores Walmart will open this year; the other will be at Fourways Mall. Both sites were previously Game stores, a move D’Hooge framed as a speed decision rather than a signal that well-known Massmart brands would be dismantled.
What Walmart would not reveal, however, is the scale of its national rollout and details about jobs. D’Hooghe would only say that the group is ambitious and that two stores are just the beginning.
He said Makro, Game and Builders will remain, each serving distinct markets. Walmart stores will focus more on middle-class and affluent shoppers at launch, though their “every day low price” strategy is intended to appeal across income groups.
D’Hooghe said the strategy has turned Walmart into the world’s largest retailer. To demonstrate that, the group conducted a comparison and said its trolley of goods came in at R1,680, beating two major competitors, whose goods cost R1,713 and R1,868, respectively, even after promotions. The trolleys were displayed at the pre-opening event on Wednesday.
Sixty60 has been a major driver of Shoprite’s growth, with rapid expansion, a consistently strong app performance and a customer base accustomed to reliability and speed. However, Walmart believes its global systems will give it an edge.
D’Hooghe referenced a newspaper article from 1962, which questioned whether Walmart could take on bigger competitors at the time. The story, headlined “Can tiny Wal-Mart survive against the big guys?” has become a symbolic reminder of the group’s ability to overcome initial scepticism. Walmart has grown to more than 10,700 stores and annual sales of $600bn.
Sixty60, meanwhile, operates from 694 stores, and its sales accounted for about 8.9% (R18.9bn) of Shoprite’s group sales for the year to end-June. Checkers stores added a further R95.7bn.
Walmart’s Clearwater Mall store employs 86 people and offers an extensive variety of products, including fresh and frozen foods, groceries, liquor, cleaning and beauty items, homeware, clothing, toys, outdoor gear and electronics.
The retailer’s focus is on fresh foods and affordable essentials, but management has also brought in international stock, including snacks such as Pickle-in-a-Pouch and Sour Patch Kids.
Massmart is also set to introduce exclusive Walmart private-label items and international products.
Walmart has also partnered with various local brands, including Famous Brands, to offer a local taste, as well as premium items such as Sparta Beef, Col’Cacchio pizza, VSG pasta, air-fryer products, and a strong selection of toys, including the trendy Labubu.
Walmart, which will initially offer deliveries within a 5km radius, said its global tech stack will provide “reliable, fast, accurate” deliveries.
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