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The management of Africa’s largest retailer Shoprite Holdings Limited has unveiled plans to integrate the subsidiaries of Walmart-owned Massmart into its operations.
The group made the disclosure in its 2021 financial statement, noting that the acquisitions will accelerate its plans to expand its physical reach and dominance in core businesses in the retail industry.
With a core interest in bolstering its brand presence and delivering on its low-price promise to customers, Shoprite acquired Masscash Cash & Carry, Cambridge Food and Massfresh from Massmart Holdings Limited for a total consideration of R1.36 billion ($95.8 million).
The acquisition, which took place in August 2021, will set the Pieter Engelbrecht-led retailer on course to take charge of 56 grocery stores and 43 liquor stores owned by Cambridge Food and Rhino Cash and Carry, coupled with 12 Masscash Cash and Carry stores.
Shoprite is also expected to integrate four facilities of Massmart’s fruit and meat businesses into its operations, subject to the fulfilment of both regulatory and commercial suspensive conditions that include Competition Commission approval.
Massmart Holdings is a South African firm operating as a subsidiary of the U.S. behemoth Walmart. The retailer owns and operates local brands such as Game, Makro, Builders’ Warehouse and CBW.
It was founded by South African businessman Mark Lamberti in 1990. Since then it has grown into the second-largest distributor of consumer goods in Africa.
The acquisition of Massmart subsidiaries by Shoprite shows that the group is clear on its intent to be the most customer-centric retailer on the continent.
This decision follows the sale of its Nigerian supermarket business, the closure of its operations in Kenya (three stores) and the classification of its operations in Uganda (five stores) and Madagascar (10 stores) as discontinued.
Engelbrecht, Shoprite’s CEO, said in addition to his decision to transform the group’s operations through strategic acquisitions, divestments and collaborative innovations, the group has unveiled ShopriteX.
ShopriteX is a digital tech hub that blends the best of data science, technology and digital talent to save customers time and money through innovation.
He noted that ShopriteX forms part of the group’s strategy to grow and monetize its value ecosystem for consumers.
The hub boasts two industry-leading innovations, namely the Xtra Savings Rewards Program, South Africa’s fastest-growing rewards program, and Checkers Sixty60, Checkers’ pioneering 60-minute grocery delivery service.
