Walmart Looks To Intensify Strategy In Africa Despite A Series Of Missteps

  • Walmart Inc WMT is doubling down on its Africa foray despite the problems compounded by economic uncertainty and the COVID-19 pandemic.
  • The retail giant purchased a majority stake in South African retailer Massmart in 2011.
  • Massmart, Reuters reported, has been making consistent losses and is loaded with debts.
  • But unlike Walmart's escape after failures in Britain and Germany, it aims to speed up its actions in Africa.
  • The strategy is to build Massmart competitive enough for its brick and mortar rivals and win the battle of African e-commerce against Amazon.Com, Inc AMZN.
  • De-listing Massmart is likely to allow Walmart to make direct capital injections and resist more losses without pressure from Massmart shareholders.
  • In August, Walmart launched a 6.4 billion rand ($350 million) bid for the 47% of Massmart shares it does not already own, valuing it at a premium of over 50%.
  • Walmart is also likely to focus on Massmart's two better-performing brands Makro and hardware chain Builders.
  • Price Action: WMT shares closed higher by 0.25% at $134.09 on Thursday.
  • Photo Via Company
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