Massmart says its project to replace Game stores in malls with small-format Makro stores is progressing well.
The Game and Makro owner embarked on a pilot programme to replace four in-mall Game stores with small concept 3,000m2 Makro stores in April 2024.
MyBroadband asked Massmart for an update on the pilot, to which it responded: “The project is making good progress.”
It added that some partners will be invited to preview the stores before they open.
Massmart has yet to reveal where the pilot store will launch. It previously said the locations would be announced later.
In April 2024, Massmart group corporate affairs head Brian Leroni said the company wants to expand the accessibility of its Makro stores to a broader market.
The project forms a critical part of Makro’s omnichannel strategy.
He added that the concept had been tested with focus groups, which provided promising feedback.
“We have been delighted by strong expressions of support from landlords, suppliers, consumers, and our own staff,’ said Leroni.
The group hasn’t provided a set-in-stone launch date, but it anticipates rolling out the test stores early in the second half of 2024.
Evan Walker, portfolio manager at 36ONE Asset Management, previously revealed that Massmart’s plan to replace Game stores with small-format Makro outlets was nothing new.
It was considered ten years ago and shelved because the previous Massmart management saw value in the Game brand.
Walker said the project to launch smaller-format Marko stores will likely be beneficial.
“It is a very good business with a strong brand,” said Walker.
He added that 36ONE supported the now ten-year-old plan to convert failing Game stores to small-format Marko stores.
“The combined Makro and Game store turnover have a lot more critical mass from a marketing and pricing perspective,” said Walker.
“The only way they will be competitive is through price, especially against e-commerce players like Takealot, Amazon, Temu, and Shein.”
The move will result in more walk-in customers for Marko while expanding its distribution footprint.
The decline of Game stores in South Africa has been happening for years, and this strategy could allow Massmart to make the most of its stores.
In March 2022, former Massmart CEO Mitchell Slape announced that the company was divesting from numerous stores across Africa, including 15 in South Africa.
Roughly half a year later, Game announced plans to close or sell thirteen of its underperforming stores in the country.
These included stores in prominent locations in Gauteng, the Western Cape, Eastern Cape, KwaZulu-Natal, and Mpumalanga.
It identified eight stores set for immediate closure. Game only proceeded with the store closures after first trying a franchise-wide turnaround project dubbed Game Reimagined in 2020.
“The Game Reimagined project was completed in June 2020 after 116 Game stores in SA were fully revamped, and the brand was relaunched as part of Game’s Halfway Day promotion on 1 July,” Massmart told MyBroadband.
“Our stores have been revamped to include new categories, such as clothing, new product ranges such as DeLonghi and Nespresso, as well as extending our ranges for our customers to have more options.”
However, the revamp and turnaround project doesn’t appear to have been enough to save all Game stores.
The eight stores identified for closure ran clearance sales before shutting their doors. These included:
- Game Bel-Air in Northriding, Gauteng
- Game CBD in Cape Town, Western Cape
- Game Gilwell in East London, Eastern Cape
- Game Greenstone in Modderfontein, Gauteng
- Game Hazyview in Mpumalanga
- Game Mall of the South in Johannesburg South, Gauteng
- Game Ulundi in KwaZulu-Natal
- Game Westwood Mall in Westville, KwaZulu-Natal
Two of the five remaining stores it had earmarked for closure never reopened following the July 2021 riots in KwaZulu-Natal.
This left three stores still set to be closed. Massmart said it hasn’t initiated closure procedures for these stores.
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