Massmart set to open Builders stores in Kenya, Mozambique, Zambia

Jul 4, 2018

Massmart Kenya Builders
Massmart announced its expansion into the hardware and construction sector in Kenya, Mozambique and Zambia, with the opening of new Builders stores. The new outlets signify an attempt to formalise retail outside grocery and to tap into the growing real estate business.

Walmart-owned retailer Massmart has announced the opening of new Builders stores in Kenya, Mozambique and Zambia. Massmart has confirmed six stores to be rolled out until the end of 2020, not specifying the exact number of outlets planned for each country. These will not be the first non-grocery stores Massmart will open outside of South Africa, where it is based and where it has the greatest number of stores. The Builders brand is already present in Zambia and Mozambique, for example.

Builders is one of Massmart’s banners under its Massbuild division, which focuses on the Home Improvement, DIY and Building Materials categories and includes four banners in total. Apart from the Builders Superstores, it is also comprised of Builders Warehouse, Express and Trade Depot. There is still no information regarding the banner and format the new stores will adopt. However, it is likely that the company will opt for its Builders Warehouse banner, given that it is the only one of the Massbuild family present outside South Africa.

The investment by Massmart, particularly its first non-grocery foray into Kenya, signals two things: (1) the retailer doesn’t want to miss out on the growth of the construction and real estate businesses in these countries and (2) that it wants to be on the front line of the formalization of these sectors in consumer retail. Especially in Kenya, these sectors have seen a significant development seen, for instance, in the production and consumption of cement. According to Massmart, the new Builders stores will answer the growing demand of “do-it-yourself homeowners and building contractors who will be offered an extensive range of competitively priced products.”

In the grocery sector, Massmart operates Game stores in 13 countries in Africa, including Ghana, Nigeria, Kenya, Mozambique and South Africa. Apart from Game outlets, the retailer owns and operates, on a franchise basis, cash & carry stores in several of these countries.

Following an unsure African expansion plan announcement in 2017, Massmart has already announced intention to enter new markets like Cameroon and Côte d’Ivoire.

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