U.S. retail giant Walmart (WMT) is launching a mobile app in South Africa as it gets set to open its first stores in the African country. However, the news did little to help its share price, which was down in pre-market trading.
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Omnichannel Experience
Its Massmart brand told MyBroadband that the stores would offer a full omnichannel experience, including online ordering and delivery.
“The app combines the best of global and local expertise by leveraging Walmart’s advanced technical capabilities, integrated with locally-developed pick, pack, and delivery systems,” the company said.
Massmart is reportedly still working on the various delivery options and pricing that the app will offer. Some deliveries will likely be carried by motorcycle while others will use larger delivery vehicles.
“One initiative that may be of interest is that we have incorporated delivery driver areas that provide drivers with a place to rest, charge their phones, and take bathroom breaks,” it said.
Massmart said the local Walmart app will share features with its U.S. version while also including aspects that are aligned with its local online proposition.
International Reach
The Massmart brand owns the Makro and Game retail chains, which sell similar merchandise to Walmart, and also owns a building materials chain Builders Warehouse.
According to 6Wresearch, the South African food and grocery retail market is estimated to grow at a compound annual growth rate (CAGR) of approximately 4.8% from 2025 to 2031. It is likely to be driven by rising disposable incomes in the country.
The demand for food and grocery products is also being boosted by more urbanization and the growing popularity of modern shopping options such as ecommerce.
Walmart hopes to open the first stores by the end of this year.
The move will also increase the company’s international reach with countries such as Canada and Mexico already adding to its top line – see above.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $129. WMT stock’s consensus price target is $115.11, implying an 8.04% upside.
