The world’s largest retailer Walmart will create more than 80 jobs when it debuts in SA before year-end.
The company said on Thursday that it would open its first store at Clearwater Mall in Roodepoort, setting a fierce retail price war in motion ahead of the highly anticipated Black Friday and holiday season festivities.
The Hyprop-owned mall confirmed that the retailer would occupy space on its upper level, introducing its “Every Day Low Prices” model to shoppers for the first time.
For JSE-listed company Hyprop, the Walmart deal comes at a time when landlords are rethinking tenant strategies amid slower consumer spending and high operating costs.
Large, value-driven tenants are increasingly being seen as essential to maintaining consistent foot traffic and stable rental income.
Clearwater Mall GM Kelly Belman said the store’s arrival represented a major boost for the West Rand. “Being selected as the location for SA’s first Walmart store demonstrates the strength of our retail offering and our commitment to the West Rand community,” Belman said.
“The creation of more than 80 new jobs adds real economic value to our region, which makes this announcement even more meaningful.”
This will be Walmart’s first standalone venture in the country after 15 years behind its investment in Massmart, which owns Game, Makro and Builders. The US retail giant bought out Massmart minorities in 2023, signalling a renewed push into the local market.
With nearly 11,000 outlets across 19 countries and almost $700bn in annual sales, Walmart’s entry into the country is expected to shake up the retail sector.
Analysts have warned that its aggressive low-price strategy could spark a new round of competition in food, clothing and general merchandise. According to MP9 Asset Management chief investment officer Aheesh Singh, Walmart’s arrival will intensify price competition, especially in groceries. He said its scale gave an edge, and incumbents would be forced to defend market share.
In apparel, where Mr Price and Pepkor dominate the value segment, Singh said Walmart could emerge as a serious contender, potentially reshaping market share dynamics.
Shoprite, Pick n Pay, Boxer and Spar are all expected to feel the heat. So too are value-focused apparel chains such as Mr Price and Pepkor, as Walmart expands into affordable clothing and household goods.
The company aims to combine its global expertise with local products, bringing a mix of international and SA-made merchandise to its stores.
“By partnering with SA suppliers and entrepreneurs, Walmart will bring its signature everyday low prices and global standards to the market, while celebrating the country’s rich culture,” said Kathryn McLay, president and CEO of Walmart International.
Massmart president and CEO Miles van Rensburg suggested that the company would lean towards an aggressive pricing strategy and the focus would be on value for money.
“Every rand matters when it comes to price,” he said.
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