Secret plan to turn Game into small-format Makro stores

Massmart has gone quiet on its plans to convert four Game stores in malls into small-format Makro stores.

The last update the retail giant provided in July 2024 was that the project was progressing well and that it would invite some partners to view the stores before they launch.

“The project is making good progress,” it said.

The Game and Marko owner launched the pilot programme to convert four in-mall Game stores into small concept, 3,000m² Makro stores in April 2024, but it has yet to reveal where the pilot stores will launch.

While it didn’t have a set-in-stone launch date, the company said it anticipated rolling out the test stores early in the second half of 2024.

The plan to convert the stores forms part of Massmart’s omnichannel strategy. Massmart group corporate affairs head Brian Leroni said the move would expand access to Makro stores to a broader market.

He explained that a significant challenge when developing a new concept store is finding suitable retail space in busy shopping malls.

“To overcome this, we have decided to test the concept in existing Game store sites,” said Leroni.

He added that Massmart had tested the concept 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.

MyBroadband asked Leroni about the need for a Makro card to shop at these stores, and he said Massmart was still working on that.

“There are various options regarding the Makro card, which we will launch at a later date,” he said.

Leroni also emphasised that the company doesn’t expect any job losses through the process.

“We would like to emphasise that our objective is to make Makro stores more accessible to a wider market through a small, mall-based Makro store concept,” said Leroni.

“The objective is not to convert Game stores. We also do not anticipate job losses as a result of this project; it is more likely to create new career opportunities.”

According to Evan Walker, portfolio manager at 36ONE Asset Management, the plan to replace in-mall Game stores with small-format Makro outlets wasn’t new.

He explained that the project was considered around a decade ago, but previous Massmart management shelved it as they still saw value in the Game brand.

Nonetheless, he believes it would be a good move and likely benefit Massmart.

“It is a very good business with a strong brand,” said Walker, adding that 36ONE supports the now ten-year-old plan.

“The combined Makro and Game Store turnover have a lot more critical mass from a marketing and pricing perspective,” he said.

“The only way they will be competitive is through price, especially against e-commerce players like Takealot, Amazon, Temu, and Shein.”

The change should increase Makro’s walk-in customers and expand its distribution network.

Game stores’ decline has been happening gradually for years, and converting them to Makro outlets could enable Massmart to make the most of its retail space.

In early 2023, the retailer announced plans to close or sell 13 of its underperforming stores across the country and marked eight for immediate closure.

Game started closing stores after first trying a 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,” said Massmart.

“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, it wasn’t enough to save all Game stores, and the retailer ran shutting down clearance sales at eight of its stores before closing. 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

It said two of the five remaining stores earmarked for closure were located in KwaZulu-Natal and never reopened after the July 2021 riots.