Massmart Hurry, boy, she’s waiting there for you!
A Walmart spokesperson: “We remain committed to investment in Africa and are well-positioned to foster development and growth in the region through investments, distribution supply chains, agriculture, technology and job creation." Translation: “OK, the Massmart deal has been good. We’ve doubled our turnover on the African continent, and turned a reasonable profit. But the business hasn’t exactly gone ballistic. South Africa’s challenging, Angola’s gone sketchy on us, and Nigeria is frankly insane. We’ve pulled out of Brazil under new (and slightly more recently embattled) CEO Doug McMillon, although Brazil was a disaster. Looking at Massmart currently, they’re taking a short to medium-term hit in profitability. But their focus is on alignment and optimising supply chain infrastructure, reducing operating costs at regional and head office levels and establishing format clarity – all of which are a good infrastructural base for us to leverage growth in Africa – it’s just taking longer than we initially thought
Comment: So – they’re probably going to stay in Africa, and with Massmart, for now.