Makro’s battle against Takealot and Amazon

Makro’s parent company, Massmart, has invested extensively in its e-commerce infrastructure in South Africa to better compete with Takealot and prepare for Amazon’s arrival.

The company’s strategy to focus on e-commerce dates back several years, with owner Walmart seconding one of its US executives, Sylvester John, to head up e-commerce at Massmart.

When John arrived in South Africa, he focused on several key areas: revamping the websites and mobile apps, boosting Massmart’s on-demand and same-day delivery capabilities, and improving fulfilment options like click-and-collect.

By the time John’s secondment to South Africa ended in November 2023, Massmart had overhauled its Makro, Game, and Builders websites and launched a Makro shopping app.

During his tenure, Massmart also acquired OneCart and Wumdrop, helping the company implement a next-day pickup option and reduce Makro and Game delivery lead times.

In May 2023, Massmart also announced that it had started using Walmart’s Global Integrated Fulfillment (GIF) Store Assist software across all Makro stores.

The company said it believes the software would allow it to offer guaranteed same and next-day order fulfilment soon.

Also in May last year, Massmart appointed Thembani Biyam as its e-commerce vice president for consumer platforms.

Biyam said over 80% of Makro and Builders orders were delivered in two days or less with high on-time delivery rates during the first quarter of 2023.

Srividya Pandya replaced Sylvester John as Massmart’s head of e-commerce on 1 November 2023.

Pandya was also seconded from Walmart US, where she is vice president of strategic integration. She also previously worked at Amazon.

Makro’s competitors have not been resting on their laurels, though.

Takealot has continued expanding and is leaning into its leadership position in logistics to offer services like same-day delivery through TakealotNow.

It also started offering Pick n Pay grocery deliveries in 2022 and launched pickup counters in the retailer’s stores in 2023.

Bob Group launched its R30 standard shipping service last year and started testing smart locker pickup points called Bob Box.

Srividya Pandya, Massmart head of e-commerce

Earlier this month, Amazon launched its South African marketplace, setting a cat amongst the pigeons in the local e-commerce sector.

Amazon and Walmart are fierce rivals in the US and around the world.

Although the company didn’t launch a full-strength service, with Amazon’s own electronic devices and Prime subscription service notably absent, industry experts say these will come in time.

Within days of Amazon launching in South Africa, Takealot had unveiled TakealotMore — its answer to Amazon Prime.

MyBroadband contacted Massmart for comment on how it plans to remain competitive as the e-commerce space heats up, but it did not respond by publication.

Pandya previously told us that they would continue investing in their e-commerce platforms.

“New entrants in the market naturally increase the level of competition which is good for consumers,” she said.

“Our focus continues to be on investing to provide great customer experiences across all our customer touchpoints, guided by Walmart’s global experience as a leading omnichannel retailer.”