Checkmate, Checkers? Grocery giants face fresh threat as Walmart hits SA with fast delivery
US retail Walmart is racing to capture South Africa’s grocery market with 60-minute delivery
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US retail giant Walmart is racing to capture South Africa’s grocery market with 60-minute delivery, challenging established chains like Shoprite and Pick 'n Pay.
The company, which announced earlier this year that it was eyeing the South African market, has since opened two stores in Johannesburg and has also revealed plans to expand to other provinces.
In an interview with BizNews, Walmart Africa boss Dries D’Hooghe said the company is offering 60-minute delivery, in-store and online shopping, and a mix of local and international products.
"What we try to do is we try to follow what the customer asks for. And it's very clear, if you're a food retailer in South Africa, you have to deliver that convenience. And 60 minutes is the market expectation. If you look at other markets, it's even faster. If you think about India, within 15 minutes you can get something delivered," D’Hooghe said.
This push by Walmart comes as online retail in South Africa is growing rapidly. E-commerce sales rose by some 35% in 2024 to about R96 billion, accounting for roughly 8% of total retail sales, up from 6% in 2023.
He added that Walmart’s global technology platform allows the company to manage deliveries efficiently, drawing on experience from other markets.
"We also have a global technology platform. That's a Walmart commercial platform that we can leverage. We can take all of the learnings from all other markets with some customers and really apply them quickly to our platform".
"I think the benefit of us having access to that global platform is that we'll also have quick access to the global innovation that comes with that. So I'm excited that we have introduced it. And I think over time, that will be a competitive advantage for us".
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mthobisi.nozulela@iol.co.za