Wal-Mart Brand Favored in Massmart’s Africa Growth Drive
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As Wal-Mart Stores Inc. plotted an Africa strategy, buying Massmart Holdings Ltd. two years ago was just the right vehicle. With 377 stores across the continent and a strong position in South Africa, Massmart offered the Americans a firm foothold in a fast-growing region.
Today, Wal-Mart is reconsidering the strength of Massmart’s biggest store brand -- Game -- if not the wisdom of spending $1.8 billion for 51 percent of the company in 2011. As the world’s largest retailer expands in Africa, Massmart may drop the Game brand in favor of Wal-Mart for stores outside of South Africa. That’s because many Africans are put off by what they perceive as South Africa’s swagger.