Hahahaha ! This will cool uchumi's mad rally.

http://www.ventures-afri...omes-walmart-expansion/
Walmart is looking to expand its operations in Africa and its next port of call – Ethiopia.


Walmart and Tesco are at each other's necks in a bid to own stakes in the African market.

Kenya is a big market for these superstores seeing as only 40% of the consumers actually do shopping at the more than 100 outlets of the 4 supermarkets. Rwandans, Ugandans and Tanzanians (to a lesser extent) are becoming ever more affluent, the middle class has grown significantly in these countries and they represent a very key target market. Expect even more superstores to come.

Ethiopia is the new frontier market in this region. The country has really opened up to allow foreigners to set up businesses there.

@essyk: Tesco took over Uchumi outlets? Really? And Uchumi did not close down due to bankruptcy; it was insolvency. Those are 2 different things.

Walmart will not get into the Kenyan Market....they tried but after a market analysis they opted not to

My view on this is very diff.
cz I ask myself,why are the products not available since most of what walmart sells can easily be manufactured by ethiopians if they have the expertise,money and facilities.
But you know the African mentality 'Foreign is good quality'.One would rather buy frozen vegetables from China than buy fresh from local retailer.
The goverment should create a conducive biz environment to enable to enable local investors compete with these big giants.
That to me is progress.



Ok I just read that again and I somehow disagree.
Allow me to ask. Who better understands the behaviour of Ethiopian market? Isnt it the local retailer? The investor relies on market research stats, but there's this local touch they miss out.

Many foreign investors hardly understand the 'african market'.Many assume they can use the same yard stick here but it flops big time over a period of time.
Instead of adjusting to the local working system,they instead prefer a complete overhaul and that marks the beginning of a downfall and a shake up in the wrong direction.
Those who succeed (like the chinese) do so because they work with what is there however remote.If anything,they assimilate the local culture giving them an edge over the others because they become accepted fast.
After acceptance biz grows.

So if you are talking about retail nous,I think it should be reverse.
Walmart has few things to learn from locals,after all isn't the success brought about by the local retailer the reason Walmart is setting biz there?
Call them opportunists if you may.:
Ok In summary they are not bringing any retail nous.Just to ride on what is there.