Don't be scared of Walmart, just do things right - Simon Mathers

"Will not lead the table overnight"

"Walmart will definitely bring a healthy competition, an international clout and a range of new products in SA, but they will not lead the table overnight in this market. And nobody should fear Walmart if they are serious about their business; instead, they should up the level of customer service if they are to survive," Mathers said, speaking via video conferencing from Chesterfield in the UK.

He was being interviewed by veteran TV journalist and SJM Retail International SA creative director Paul Tilsley.

Mathers, who has worked in the retail industry for about three decades, could not attend the Johannesburg event due to some unforeseen circumstances (he lost his wallet and passport at Manchester Airport and could not fly to Africa).

"There is nothing Walmart can teach Massmart or Shoprite about how to deal with the African consumer," he said, adding that local retailers will survive because they have a service to offer, as long as they improve the quality of their products and have a good price.

Not a death sentence

Mathers said the entry of Walmart will not spell a death sentence for local retailers, which he believes should focus on their customer base and look at the uniqueness of a small store concept, and just do things right.

Mathers was speaking at the Gallagher Convention Centre in Midrand, simultaneously with the Southern African International Trade Exhibition (SAITEX), reportedly the continent's largest food and beverage gathering which opened its doors today, Tuesday, 19 July 2011, on Sunday, 17 July 2011, to more than 750 companies and 12 000 visitors from about 40 countries.

SAITEX, a three-day event, has grown by 47% since 2010, according to the organisers.

Walmart, described by former CNN correspondent Tilsley as a 'wallowing elephant', is the world's largest retail group, with global sales reaching more than US$80 billion in 2010, according to a recent report compiled by SJM Retail International, Mathers' company.

Marriage made in heaven

Walmart has acquired 51% of SA retail giant Massmart, a deal described by Mathers as a marriage made in heaven for the African consumer.

France's Carrefour, UK's Tesco, France's Metro and US giant Costco are also among the top five global retailers. No SA retail group is listed among the top 50 global retailers, raising the question whether any SA top retailer is good enough to become a global force on its own.

Mathers said: "The African retail market is getting more and more competitive and from what I have seen the SA retail standards are very good, and SA retail recipes are working well in other parts of the world, especially in Middle East, which I believe is an extension of the SA business."

He also said that there are many skilled South Africans heading retail businesses in many parts of the world, including Malaysia and Australia.

The Simon Mathers breakfast session was made possible by MTN Business. Bizcommunity.com is a media partner.

Updated at 12.09pm on 19 July 2011.
Corrected at 12.17pm on 19 July 2011.