US retail giant Walmart said on Tuesday it will launch its first Walmart-branded stores in South Africa this year, expanding its presence in the country where it already owns local retail group Massmart.

While Walmart has operated in South Africa for years through its fully owned subsidiary Massmart, which runs chains like Makro, Game, and Builders Warehouse, it has never launched stores bearing its own name.

This move places Walmart squarely against leading South African chains such as Shoprite, Woolworths, and Pick n Pay.

Additionally, it will challenge online giants like Amazon and local heavyweights like Takealot.com in the growing e-commerce sphere.

"This strategic move underscores Walmart's commitment to making high-quality, affordable merchandise accessible to more customers," a Walmart statement said, adding that it has recruited small and medium-sized African-based suppliers.

The new outlets will stock a broad range of goods, from fresh groceries and household essentials to apparel and technology products, said Walmart President and CEO Kath McLay, according to Reuters.

"Walmart will also offer a variety of locally sourced products. By partnering with South African suppliers and entrepreneurs, we aim to bring our signature everyday low prices and global standards to the market while celebrating the country's rich culture," McLay added.

Several sites are currently under development, with official opening dates expected to be announced in October, Walmart said.

Massmart, which Walmart fully acquired in 2022, operates the Makro and Game chains, both of which sell a similar mix of goods, as well as the Builders Warehouse home improvement brand. (Business Insider Africa)

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