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Johannesburg - Walmart's entry into SA, with the retailer's
low-cost philosophy, continues to shake up the retail sector as Massmart
subsidiaries and its biggest competitors feel compelled to cut prices, said
Business Report.
The paper quotes Alan Coward, CEO of home appliances
supplier Amalgamated Appliances, as saying: "Walmart's entry has indeed
resulted in consumers being winners.
"With Walmart coming here things have changed and competitors have upped their game. Suppliers have cut costs where necessary, especially in their distribution centres and their warehouses."
Coward said although some suppliers had to reconsider their
selling prices, "they have worked with the retailers but not in a
collusive manner".
It is evident that competition is heating up in the retail
space, especially between Shoprite Holdings [JSE:SHP] and Massmart Holdings
[JSE:MSM], which have adopted longer price-cut promotion periods, the report
said.
Retail analysts said price-cut promotions have definitely
benefited consumers.
Since the beginning of the year, both Massmart and Checkers reportedly claim to have saved consumers up to R300m through aggressive discounting, and by keeping prices lower for longer.
