Investment in information technology will be a key focus area for US retailing giant Wal-Mart if it proceeds with its nonbinding offer to buy SA retail group Massmart in a R30bn deal.
Massmart, which owns Makro and other discount stores, told shareholders on Monday morning that Wal-Mart Stores had made a preliminary, nonbinding proposal, which could lead to the world’s largest retailer acquiring the JSE-listed group for R148/share.
Any deal is first subject to a due diligence investigation of Massmart.
Wal-Mart is well known for harnessing IT to optimise efficiencies and profit margins, investing heavily in supply chain management and data mining tools and other software.
It is also a pioneer in the use of RFID (radio frequency identification), using “smart” electronic tags to keep track of stock levels and movements.
Massmart is already regarded as a market leader in SA in its use of technology, but Wal-Mart International CEO Doug McMillon says the proposed combination will allow the US company to “add value to an already successful business through investments in people and technology”.
Massmart, headquartered in Johannesburg, is one of the largest distributors of consumer goods in Africa. It has 290 stores in 13 countries in the region. – Staff reporter, TechCentral
- Image credit: D’Arcy Norman
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