One of our countries biggest retailers Wal-Mart is trying to expand overseas and buy South Africa's retailer Massmart. This makes the expansion that Wal-mart was looking for and into overseas, but just not in South Africa. The Crime rate is very high in South Africa and they also have a twenty four percent unemployment rate, which is very high. Massmart own 290 stores in over 13 countries in the continent of Africa, and with Wal-marts business making over 25 percent of their revenue, this would be a power move. Although the move is still up in the air, it is very possibly, but more than that a great opportunity for the Wal-mart company.
Wal-mart expanding overseas to South Africa sounds like an smart move. With as many stores as the current retailer Massmart has, it only makes sense to take the third largest distributor of consumer goods and put an American brand name behind it. With Wal-marts added selection and concrete structure, the store will run smooth into its transitions from name and brand. The only and biggest problem i see aside from shares, would be that South Africa is very unionized, where Wal-mart is totally against the union. The potential is their in this growing urbanized economy, which means their is only more room for growth.
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