Tuesday, December 14, 2010

Walmart in Africa?

So was I going around my daily routine when I found this article about Walmart vending into Africa on Newsweek quite eyecatchy... See Maybe you've heard of the whole Walmart in Africa hype and its criticisms are quite vague, it goes to show again that these guys still think of developing countries as undeveloped countries, I hadnt been following coz it seemed like just the same to me, another western company looking for market in Africa....Well not the way Newskeek put it..


Save money, live better—in Africa? The news that Walmart was buying a $2 billion controlling stake in South African retailer Massmart sparked the usual round of threats and protests. South Africa’s powerful un-ions threatened to strike, a move that’s believed to have downsized the Arkansas-based company’s desire to buy Massmart outright.But some of the usual suspicions may be unfounded. While Walmart is pilloried in America for destroying mom-and-pop retailers, that isn’t necessarily the case overseas. Walmart operates in at least eight developing nations, and there’s little evidence it has wiped out local shopkeepers. In most of those countries the retailer actually appeals to an upscale crowd looking for the cachet of an international brand. Also, in many developing nations, customers have no choice but to shop locally—often within walking distance of their homes. Few own cars, and roads are too poor, traffic too terrible, or gasoline too expensive to make a big-box retail model effective. And trying to open many smaller outlets in crowded urban environments makes it harder for Walmart to keep costs down. That leaves plenty of opportunity for Mom and Pop to stay in business.
Dear Newsweek..
+ the 1000s of critics
I dont know what you were insinuating but.. Mom and Pop retailers? Really? Yes there are Supermarkets in Africa thank you very much you are not introducing them. Ps... The 
South Africa I know has fine Roads and they're real good down there! See here  And  Many people do have cars in South Africa, come on guys, wisen up... it took me atleast 5 minutes to find these figures here and btw:its said there is 1000 cars for atleast 129 people so I guess those are okay figures... Most of the urban areas in South Africa do have proper roads if I'm not wrong all the major population centers in S.A. are linked...and yes there is traffic congestion....but isnt that inveitble in big cities and peak hours? Well unless of course Wal-mart was planning to build itself inbetween the thick South African Jungles, I dont see why a big-box retail model wouldnt be effective....I dont see why...The largest 'big-box retailer' GAME ...is doing just fine infact he is so fine he expanded himself in 11 African countries...(bummer huh? Yeah there are more countries with big supermarkets) likewise can be said for other big retailers, Pic n Pay, Shoprite, in short  South Africa represents the largest retail industry in the Sub Saharan region and ranked as the 20th largest retail market worldwide! I  mean Massmart itself want doing too shabby it did have 288 stores in 14 sub saharn countries...Wal-Mart is just buying a Massmart...it not introducing the Shoppers Delight!!! shish!!! What you should be highlighting is..the unions,take note that South Africa has the strongest unions in Africa and as for now they are saying "Congress of South African Trade Unions is alarmed that they are even considering an offer from Walmart to take over key strategic National Companies in South Africa.And they are willing oppose the setting up of any Walmart stores in the W /Cape because The Company is notoriously anti union and anti workers rights, and an affront to workers rights wherever they operate around the world." In short ...Do Your homework...
Love La Princessa

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