The internationalization of retail concerns has become a planetary phenomenon as retail merchants around the universe expand their operations beyond national boundary lines. This phenomenon has attracted some academic attending. In Africa. South Africa appears to be more advanced in this respect. with Shoprite at the head of the Africanisation of South African retail merchants. A reappraisal of Shoprite’s enlargement into the continent consequences in two propositions and some challenges that affect this procedure.
The wider significance of the propositions is farther examined by a survey of other South African retail merchants spread outing into Africa. The reappraisal finds that although there are chances for retail merchants in African states. there are besides important challenges that can contradict the chances.
Most significantly. the chosen manner of entry into African states plays a important function in the overall internationalization procedure and should be a primary concern of direction squads sing doing such a move. and it is established that the manner of entry comprises at least five countries of critical determination devising. Cardinal words: Africanisation. retailing. international retailing. South African retailing. African markets. manner of entry. ICTs. international concern.
Since 1994. South Africa has moved to go portion of the African continent. even to the point that it developed 1 and championed an African docket. This move opened up chances for South African concerns within the continent. In this respect. taking South African retail merchants ( including Shoprite. Woolworths. Massmart. Truworths ) have already invested in. and now operate in diverse African states. In the past decennary. the continent has besides seen shopping Centres and promenades built in most African metropoliss. some of which are besides South African investings ( Miller. 2006 ) . There is still immense potency for all sorts of South African concerns to spread out within the continent. and there are benefits for all concerned.
Already the six primary sectors of the South African economic system: excavation. retail. building and fabrication. fiscal services. telecommunications. and leisure and *Corresponding writer. Electronic mail: [ electronic mail protected ]
African docket in this instance refers to former president Mbeki’ s vision of an African Renaissance. and the constitution of the New Partnership for Africa’s Development ( NEPAD ) .
touristry. are in one manner or another investment in the continent ( Daniel et al. . 2003 ) . Furthermore. the completion of the SEACOM’s East African pigboat overseas telegram and the up coming West African overseas telegram system that will supply fibre ocular connexion from Africa to the remainder of the universe will open more concern chances on the continent. It is. hence. non surprising to see an increasing figure of South African retail companies spread outing into the remainder of the continent to seek growing and research new strategic chances. The Shoprite Group operates its ain shops in 15 African states outside South Africa. including Angola. Botswana. Ghana. Lesotho. Madagascar. Mauritius. Mozambique. Namibia. Nigeria. Swaziland. Tanzania. Uganda. Zambia and Zimbabwe ( Shoprite. 2008 ) . The group’s operations have been by and large successful in most of these states and in some instances income has exceeded their projections and outlooks. This public presentation has triggered legion growing and enlargement programs for most of the states listed supra. For illustration. with the gap of one supermarket in Accra. Ghana ( in November. 2007 ) . the group instantly started look intoing the possibility of opening five more shops around the Accra country ( Shoprite. 2008 ) . This study besides indicates that their Dakora et Al.
African operations have produced higher turnover growing
than their South African opposite numbers.
However. this is non the instance with their operation in
India where foreign retail ownership is forbidden by
authorities ordinances. Shoprite had to run by
agencies of franchising in Mumbai ( Shoprite. 2008 ) .
Grosss do non fit those achieved in Africa.
foregrounding the manner of entry as a cardinal factor in the
successful accomplishment of retail internationalization.
Yet. even in Africa. it has non all been easy. Due to miss
of suited acquisition marks and confederation spouses. and
given the informal nature of the retail sector in most
African states. they are obliged to open their ain
shops ( Games. 2008 ) . The Shoprite one-year study
( Shoprite. 2008 ) indicates that they are presently confronting
competition from other South African retail merchants who are
besides traveling into Africa. For illustration Massmart. besides
spread outing into Africa. will give Shoprite a tally for its
money in markets for difficult goods. Besides. as a
effect of their go-it-alone attack to
Africanisation. Shoprite frequently does non garner plenty
market cognition and contacts before entrance and
set uping a bridgehead in these new markets. which in
itself becomes a job ( Games. 2008 ) .
There are besides studies of supply issues stalking the
company in its Africa operations. Nigeria is reported to
hold government-imposed import limitations on some
merchandises. This is in a command to protect the local economic system and
providers. Miller ( 2008 ) points out that the issue
refering local providers is politically controversial for
South African companies runing in foreign African
states. Although South Africa has moved to be portion of
the continent and has championed an African docket ( as
noted at the start of this paper ) . there are concerns that
this commercial activity might go another signifier of
colonization. As a consequence. these companies have to
show their support and engagement in local
development in those foreign states or hazard being
accused of “exporting Apartheid” into Africa ( Miller.
2008 ) . Of class. the fortunes of each state
might change: Miller found that the Shoprite Group entered
Zambia under favorable conditions that did non try
to protect local manufacturers and providers.
Despite the addition in retail internationalization in
Africa led by the South African retail merchants. small research
has been done in this country. This paper is a reappraisal based
on a survey of one-year studies and other publically available
beginnings ; it seeks to develop a foundation for more
elaborate instance survey work on the phenomenon. The paper
discusses how the Shoprite Group’s enlargement into Africa
has been achieved. and how it secured its place as the
largest nutrient retail merchant on the continent. Two propositions
refering challenges impacting the determination of entry
manner are established. based on the Shoprite survey. The
issues that inform these propositions are. nevertheless.
limited to the consequences of the Shoprite’s reappraisal. and.
hence. prevent other issues that might be relevant to
the phenomenon but non obvious in this survey. The
propositions are farther examined by looking at a scope
of other instances of South African retailers’ enlargement into
In recent old ages. the universe of retailing has seen a dramatic
addition in international activities by retail merchants around the universe ( Park and Sternquist. 2008 ; Myers and Alexander.
2007 ; Dawson and Mukoyama. 2006 ) . The phenomenon
of retail internationalization has become an of import
characteristic of planetary concern. As consumer merchandises and
services become planetary. and around the whole universe
consumers’ manners of ingestion and attitudes
progressively become similar. retail merchants are prompted to
respond to this tendency. This consequences in the outgrowth of
international ( and in some instances planetary ) retail companies
( Federzoli. 2006 ) .
As Jack Shewmaker. manager of Wal-Mart points out ; “it
is perfectly clear the biggest chance confronting retail merchants [ today ] is internationalisation” ( McGarriagle. 2008:12 ) . In working this window of chance. the universe has seen
retail concerns grow into transnational corporations
lending to economic systems on a world-wide footing. The
lifting degrees of internationalization among retail
concerns can be attributed to three factors: growing in
size. growing in technological edification and the demand
to react to the altering demands and behaviors of
clients ( Myers and Alexander. 2007 ) .
However. retailing is geographically tied. and
international companies must hold a physical presence
in the foreign states concerned in order to carry on
their concern ( Sternquist. 2007 ) . Harmonizing to Dawson
and Mukoyama ( 2006 ) . the internationalization of retailing
is apparent in many ways including: the sourcing of
merchandises for resale. the operation of shops in foreign
states. the usage of foreign labor. the acceptance of
foreign thoughts and the usage of foreign capital. There has
been an addition in all these facets in footings of volume
and spacial range. Dawson and Mukoyama indicate. This
addition in retail enlargement has continued across the
universe. characterised by big retail ironss. chiefly from
the most developed states. traveling into less
developed 1s. and this has attracted some academic
However. most research in the country of retail
internationalization has focused on the developed universe
with small attending being paid to developing economic systems.
particularly those in Africa. Zhang and Dodgson
( 2007:336 ) observe that most research in the field of
international concern and entrepreneurship dressed ores
on “early internationalization of houses based in developed states. particularly Europe and United States” . Where
Africa is studied. small attending is paid to retailing. as
Afr. J. Bus. Manage.
most old research has ever focused on
fabrication and pure service industries despite the
recent addition in retail internationalization ( Park and
Sternquist. 2008 ) .
The reappraisal takes into consideration South African retail companies that have expanded their operations beyond their place part. the Southern African Development Community ( SADC ) in a important manner. Pure service retailing is beyond the range of this paper. Shoprite is the largest nutrient retail merchant in Africa. and besides the open uping retail merchant to ship on a continent broad enlargement
scheme. A reappraisal of Shoprite’s Africanisation procedure is carried out with the position of deriving some apprehension of the phenomenon. Therefore. the propositions and challenges around the issue of mode are limited to what is obvious in the Shoprite survey. The significance of these propositions and the relationships between them are farther examined by the survey of other instances of purposively selected South Africa companies traveling into Africa. Since the purpose is to understand the phenomenon under survey. purposive sampling enhances the potency of understanding
( Devers and Frankel. 2000 ) . As indicated earlier. the survey has mostly been based on one-year studies and other publically available beginnings. and. hence. the reappraisal took a content analysis
attack. Due to its ability to measure the effects of environmental variables like ordinance. socio-economic issues. and location features such as market attraction. credibleness and likability ( Kolbe and Burnett. 1991 ) in the internationalization procedure. content analysis techniques was utile in this survey.
The Shoprite Group of companies came into being
with the acquisition of a supermarket concatenation in the
Western Cape. in 1979 ( Shoprite. 2009a ) . This enlargement
scheme has continued and has helped the expansiondriven company to demo its presence across the state. and the group now comprises Shoprite. Checkerss.
Checkerss Hyper. Usave. All right Furniture. OK House and
Home. All right Power Express and OK Franchise Division
( with a figure of shops and trade names under it ) . The
national growing and enlargement scheme of Shoprite. as
observed. has been through amalgamations and acquisitions.
but it modified and extended this scheme when traveling
It achieved international enlargement by opening its ain
shops in the foreign states in which it operates. so that in 2008. out of a sum of 984 shops. 100 supermarkets
were being operated in 16 states outside South Africa
( Shoprite. 2008 ) . The company claims that the
international shops operate with the same criterions of
edification as in the place state. South Africa.
Hence. Shoprite now confidently proclaims its name as
the largest nutrient retail merchant in Africa. The enlargement into
African was a bold determination that has continued to
influence the hereafter of the Shoprite Group to the present
twenty-four hours. However. this could non hold been possible without
clear vision. scheme and the appropriate pick of manner
of working. The undermentioned points highlight some of the key
factors that contributed to Shoprite’s success in Africa:
Suitability of concern theoretical account
Most of Africa’s populated metropoliss are place to middle to
high income earners who yearn for quality of life. and
Shoprite’s proviso of a universe category shopping
environment and a broad scope of merchandises at arguably
low-cost monetary values meets their dreams of a better life. The
gap of shopping Centres and promenades has been a
characteristic of the Shoprite concern theoretical account. as expressed by
the Chairman of the group. C H Wiese in their one-year
study ( Shoprite. 2008:8 ) . “we have brought a developed
country’s shopping experience to 1000000s of people who
have ne’er been exposed to trading of this nature” . In
kernel. this goes beyond the activities of retailing ; it is really development. as the bright shopping mercantile establishments and
promenades have become portion of a new urban development and
modernness ( Miller. 2006 ) .
Mode of working
Shoprite’s pick of manner for its enlargement programme
has mostly been by opening up its “own stores” in the
states where it operates. This scheme allows the
company to hold absolute control over all its operations.
both local and foreign. and pull offing them from its caput
office in Cape Town. Park and Sternquist ( 2008 ) found
that retail companies shiping on planetary schemes
prefer opening subdivisions or set uping wholly-owned
subordinates for their international operations. although
franchising has been widely used in this respect. This is
because the wholly-owned entry manner allows for more
control and engagement in the operations of the new
constitution. Opening their ain shops besides offers
potentially greater returns in footings of net income ( Park and
Sternquist. 2008 ) .
However. wholly-owned subordinates or ain shops are
seen as the most expensive manner of internationalization
for any peculiar company as it requires more resource
committedness. including direction clip and finance
( Doole and Lowe. 2004 ) . Doole and Lowe contend that
this manner is used when a retail company is certain that
its merchandises and services will make good in the long-run. in a foreign market of a politically stable state. since it
allows the internationalizing company to hold full
ownership and the control necessary to run into its strategic
aims. Whatever of all time the state of affairs. the pick of
entry manner is one of the most critical and strategic
determinations the company has to do before trying to
internationalise ( Venter et al. . 2007 ) .
Empowerment. occupations and preparation
Despite Shoprite’s attack of opening its ain shops
and shopping Centres. it besides invested and continues to
Dakora et Al.
invest in the human capital of the foreign states where
it operates. The group employs more than 8 000 local
people in its shops outside South Africa. some of whom
have been trained to go directors ( Shoprite. 2008 ) .
Further. local little graduated table husbandmans are being supported to
upgrade their production criterions so as to provide the
Shoprite shops. It has besides been reported that the
Shoprite Zambian operation is already self-sufficing in
vegetable supplies. thanks to the battle with local
Supply concatenation efficiency
Selling fresh nutrients in multiple states through whollyowned shops could present a logistical incubus. But. thanks to Shoprite’s sophisticated supply concatenation web
and strategically located distribution centres this has
been possible and it has been a success ( Shoprite.
2008 ) . Another of import component here is their ability to
develop the necessary accomplishments. backed by advanced
information systems. to enable them to beginning and
deliver merchandises to all their shops from anyplace in the
universe. says their 2008 one-year study. This component
summarises the whole kernel of retailing – delivering
the right merchandises and/or services to the right clients.
at the right topographic point. in the right status or signifier. and
surely at the right monetary value. As indicated by Dawson and
Mukoyama ( 2006 ) the most of import map of retail merchants
is to do a scope of merchandises available to consumers for
Information systems and engineering
Information systems and engineerings non merely back up
supply concatenation direction. but besides direction
procedures. For the Shoprite Group to pull off all its
shops and operations from one caput office. it has to hold
dependable information systems and engineering in topographic point.
They have invested in the most sophisticated information
engineering and systems available to the retail industry.
and use gifted people to pull off them. harmonizing
to the Chairman’s study ( Shoprite. 2008 ) . With this
promotion in information engineering. their systems
are able to put up to 490 000 orders per month to
reorder merchandises automatically from their bing
providers. the study indicates. In his study Whitey
Basson ( Chief Executive Officer ) indicates that their
investing in information engineering and substructure
has improved efficiencies at all degrees of the concern.
and no uncertainty the capacity to manage increased supply
concatenation activity in an international context ( Shoprite. 2008 ) . Discussion
It has come to visible radiation from the Shoprite reappraisal that both
political issues and company-level issues affect South
African retail merchants in their quest to tap into the African
market in a buttery manner. In an interview with the Authoritative
FM concern programme on 18 February 2009 ( Shoprite.
2009b ) . Basson said:
South Africa has non woken up to the fact that
they are portion of that large planetary small town. and there
are a batch of Torahs that need to be changed to
do African bargainers work better with each
other. in and out. it’s a snake pit of a occupation to really
acquire through the ruddy tape and do trading
easier. So I feel really strongly about it that they
should look at that and state listen. as SA become
portion of the African continent and a prima function
participant. we should really organize some
committee…that makes the trading easy ; acquire
[ revenue enhancements ] structured properly… . [ so that ] a truck
can travel to and be cleared within an hr traveling
from one boundary line to the following and non stand and
delay for four or five yearss in between borders… I
think we [ are ] merely dawdling in that procedure.
Furthermore. in her research into the conditions of Shoprite
workers in Lusaka ( Zambia ) and Maputo ( Mozambique ) .
Miller ( 2006:36 ) found that “across the classs of age. gender. accomplishment and permanent or insouciant position. workers felt
misused and mistreated by Shoprite management” .
Miller’s research reveals that workers complain about
rewards. working conditions. hours. and overtime wage. Due
to high costs of life. the rewards earned could non
back up their basic demands. although Shoprite’s wage
bettered the legislated minimal pay at the clip.
In general. the enlargement of the Shoprite Group into the
remainder of Africa has shown that mode is of import ; and
the issue of manner is much more than gap entirely
owned shops. franchising and others. as it besides concerns
the relationship with local manufacturers. providers and
workers and other stakeholders. Talking to Fin24
( Shoprite. 2009c ) . Basson had this to state about traveling
We can duplicate our African concern if we can
acquire rid of all the ruddy tape and all jobs of merely
acquiring shops and ware out at that place. So it’s
truly still really. really tough and there is really small
aid from anybody. be they makers or
authorities from both sides to do the African
continent a planetary trading country like you have in
Europe or the Americas.
The reappraisal of the Shoprite narrative. and its African
enlargement schemes. demonstrate that the manner of entry
into African markets is of strategic importance. While it is apparent that there are still more chances for
enlargement into African states. there are important
challenges. and these challenges revolve around the
pick of entry manner. Therefore the construct of manner and
manner differences are of import as concerns have to
Afr. J. Bus. Manage.
take some of import determinations about manner. These
observations from the Shoprite survey suggest the
Proposition # 1: It is non easy acquiring into African
markets ; there are important manner differences which
present assorted challenges.
Proposition # 2: Components of the modal issues and
the nature of the challenges include:
a. Support for local economic systems. manufacturers and providers.
and labor is critical ;
B. Efficient supply concatenation direction. and good
information systems aid ;
c. Movement of goods across boundary lines can present logistical
d. Competition emerges as many South African retail merchants
expand into the continent ;
e. Government intercessions are needed to open up the
continent for trade.
The manner is hence a mix of how these challenges
are handled. and this is declarative of the manner picks.
Furthermore. the challenges sing support for local
manufacturers and labor. and supply concatenation direction are
peculiarly of import. South African retail merchants have come
under examination in recent old ages for dumping South African
merchandises in African markets. small support for local labor and forcing local companies out of concern ( Games.
2008 ) ; an issue Shoprite is said to be working hard on
( Shoprite. 2008 ) . Besides. although most of the freshly
economically sceptered populations of Africa want to
pass their money in shopping promenade. there are those
people who are driven to be concerned about clime
alteration because of the globalization of the issues of
clime alteration and the significance of C footmark
direction in running a concern.
This raises the importance of ware scope
direction. as some consumers might prefer locally
produced organic merchandises. Therefore. there might be a
demand for the re-ranging of merchandise lines of South African
retail merchants in their African operations.
The wider significance of the propositions established.
and the relationships and mutualities between
them can be investigated by a reappraisal of other South
African retail concerns traveling in the same way.
OTHER SOUTH AFRICAN RETAILERS EXPANDING
INTO THE REST OF AFRICA
that the company now operates 12 Game shops in 10
sub-Saharan African states outside of South Africa
including: Botswana. Ghana. Malawi. Mauritius.
Mozambique. Namibia. Nigeria. Tanzania. Uganda and
Zambia ; most of the shops are said to execute better ( in
footings of gross revenues ) than their South African opposite numbers
( Massmart. 2008 ) . Other format shops are located
elsewhere. The study besides indicates that the company
bargains from local providers and besides import from different
states including South Africa.
Harmonizing to the one-year study. the excellent
public presentation of shops in Africa caught management’s
attending. and “this prompted us to revise our earlier
policy to restrict our African footmark to one shop per
state ( with exclusion of Botswana and Namibia ) ” . As a
consequence there are new shops under development for
Malawi. Zambia. Ghana. Nigeria. Angola. and others. as
However. in an interview with fin24 the Massmart CEO.
Grant Pattison indicated merely how hard it is to run in African markets outside of South Africa. particularly
when it comes to geting belongings ( Massmart. 2009 ) .
He said “we can work on a belongings for 10 years” and
explained how that can halter their enlargement procedure.
Having said that. he besides indicated that “the more hard it is to run. the more chance there is for a good
operator” and in the concluding analysis they do non see it peculiarly hard to run in foreign African states ( Massmart. 2009 ) .
Truworths is one of the taking South African dress
retail merchants. selling multiple trade names of women’s. men’s.
teenager’s and children’s manners and related merchandises
( Truworth. 2008 ) . Truworths is an investing retention
company with subordinates. Like other South African
retail merchants. the group is spread outing into the continent. and
presently operates 25 franchised shops in both foreign
African states and in the Middle East ( Truworths.
2009 ) . Unlike the Shoprite and Massmart Groups.
nevertheless. Truworth’s scheme for enlargement has been
through franchising. The group has a presence in the
following African states beyond the boundary lines of South
Africa: Botswana. Ghana. Kenya. Lesotho and Tanzania
under its multiple trade name labels. However. studies of how
good those franchised shops perform are non indicated.
Frank winfield woolworths
Massmart is a jobber and retail merchant of general
ware and other watercourses of goods. Since 1994 the
company has expanded its concern operation beyond
the boundary lines of South Africa to tap markets in the remainder of
the continent. In its 2008 one-year study. it is explained
Frank winfield woolworths. like Truworths. is one of the major manner
and accoutrements retail merchants in South Africa ; the company
besides operates a supermarket concatenation and pharmaceuticss. It
operates countrywide and besides offers franchise
chances. both in the local market and foreign African
Dakora et Al.
states ( Woolworths. 2008 ) . As reported. the company
operates franchise shops in foreign African states.
including Botswana. Ghana. Kenya. Lesotho. Mauritius.
Mozambique. Namibia. Nigeria. Swaziland. Tanzania.
Uganda. Zambia and Zimbabwe. The public presentation of the
franchised foreign operations is. nevertheless. non indicated
( Woolworths. 2009 ) .
RETAIL MARKET OPPORTUNITIES IN AFRICA
Retail chances in Africa are extended. as some
African states are sing strong economic
growing and are profiting from political reforms. The
“doing business” study of the World Bank ( 2008 )
indicates an increasing tendency of states implementing
reforms to ease cross-border trade globally. and
shows that Africa is at the head of this tendency. The
study observes that Ghana. Kenya. Mauritius. Rwanda
and Tanzania have all reformed in recent old ages. and that
African states such as Botswana. Mozambique and
Rwanda and Ghana have been able to make positive
and stable authoritiess. The attendant encouragement in their
economic systems has been noticed. and the chances are
clearly seeable ( Mahajan and Gunther. 2009 ) .
Equally good as economic enlargement. it is deserving observing that
the combined population of African states is besides
turning quickly. With Africa still demoing the highest birth rate. its population is projected to make two billion by
2050. despite mean life anticipation staying low
( Venter et al. . 2007 ) . Within African states there is a
turning highly-educated labour force. that can do a
part to companies spread outing into the continent ;
there is besides a turning proportion of middle-income
earners who seek to bask the services of these
In speaking about the continent’s market size. possible
and chances. Mahajan and Gunther ( 2009:3 ) aid to
put things in position:
Africa has more than 900 million consumers.
Despite the challenges. every twenty-four hours they need to
eat. They need clean H2O. They need shelter.
vesture. and medical specialty. They want cell phones.
bikes. computing machines. cars. and instruction
for their kids. Businesss are already prehending
these chances in edifice markets across
As we have noted. outstanding among the companies
prehending chances in Africa are South African retail merchants. and this is apparent in the lifting shopping promenades and South
African retail shops in metropoliss across the Continent ( Miller. 2006 ; Mahajan and Gunther. 2009 ) . Furthermore. the
increased communications connectivity and use in
African states besides opens up a batch of chances. The
information economic system study hailed this engineering
enlargement as the beginning of the strong moving ridge of invention
that changed the face of the planetary economic system during the
last one-fourth of the 20 century” ( United Nations. 2007 ) .
With the launch of the East African Submarine Internet
overseas telegram. that connects Eastern and Southern African
states to the remainder of the universe in cheaper and faster
ways. ICTs will go on to be a positive factor.
However. Mahajan and Gunther indicate that most
emerging markets have serious jobs that can non be
ignored by concerns runing within them. and Africa
has its ain alone state of affairs ; this issue is discussed
under the following header.
Infrastructure ( including conveyance. electricity. H2O.
sanitation. medical specialty. and engineering ) has ever been at
the head of challenges faced by companies runing
in Africa. but these challenges really present
chances to concerns that can run into them ( Mahajan
and Gunther. 2009 ) . All the same. it is still hard and
dearly-won to travel goods from one state to another when
there are hapless rail and route webs ( Economist
Newspaper. 2008 ) . This poses logistical troubles for
retail merchants who need to travel perishable or fast-moving
consumer goods from warehouses to shops. in
geographically widespread locations within the continent. as
indicated earlier in the treatment of Shoprite.
Additionally. cross-border trade is affected by route
blocks. ruddy tape and slow usage clearances at most
boundary lines. As explained in his interview with Fin24
( Massmart. 2009 ) . the Chief executive officer of Massmart said “ [ When ] we
supply goods into Lagos. it might take 12 hebdomads on the
H2O. [ but it can take ] 14 hebdomads to clear” . Obviously. this precludes any consideration of the supply of fresh
As international retailing becomes a world in Africa. the
complexnesss of the phenomenon. coupled with the unique
African state of affairs. necessitate academic attending to assist
demystify the procedure. South African retail merchants have
moved into the continent rather carefully. and most are
accomplishing growing. in some instances even more than within
their place operations.
This by and large positive
experience virtues more surveies so that it can be
understood and used to speed up the benefits for all.
particularly the African consumer.
This paper has focused on the manner of internationalization as an of import issue that demands the attending of retail directions sing traveling into
Africa. For illustration. it is interesting that Shoprite and
general ware retail merchant. Massmart have opened
Afr. J. Bus. Manage.
their ain shops. whereas dressing retail merchants. Truworths
and Woolworths operate via franchising. As a consequence.
while Shoprite and Massmart have full ownership and
control over their operations in foreign African states.
they however have to shoulder the challenges in
those markets as discussed. In the instance of their
franchised opposite numbers. this has been avoided. at the
cost of ownership and some control. It is already apparent
that there are many fluctuations on these simple subjects
that all demand to be studied and understood.
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