MASSMART TO INTRODUCE MINI MAKRO STORES IN FOUR MALLS

Massmart, a Walmart-owned South African discounter is launching mini Makro stores within existing sites of its Game supermarket stores. The mini Makro stores will be trialled within four Game sites. This strategic shift comes in response to evolving consumer preferences and market dynamics, aiming to enhance accessibility and convenience for shoppers while optimizing operational efficiency.

The decision to venture into small-format stores reflects Makro’s commitment to staying agile and responsive in an ever-changing retail landscape. With the rise of urbanization and the growing demand for convenience, the company is strategically positioning itself to cater to the needs of urban consumers who seek hassle-free shopping experiences closer to home.

Image: News24

Enhancing Accessibility and Convenience

Group corporate affairs head Brian Leroni said the objective is to make Makro stores more accessible to a wider market. It is also an important part of Makro’s omnichannel strategy.

“We have been delighted by strong expressions of support from landlords, suppliers, consumers, and our own staff”. He added that the concept’s development was at an advanced stage and has been tested with focus groups.

According to Evan Walker, portfolio manager at 36ONE Asset Management, the mini Makro plan holds promise, provided that pricing remains competitive and aligns with consumer expectations. Affordability and value proposition will be key drivers of success for these compact stores.

Evan said they supported the strategy of converting Game stores into small-former Makro stores ten years ago, and it still makes sense.

“The combined Makro and Game store turnover have a lot more critical mass from a marketing and pricing perspective. The only way they will be competitive is through price, especially against eCommerce players like Takealot, Amazon, Temu, and Shein.”

Image: Tech Central

Understanding Customer Response

Makro’s foray into small-format stores is not a shot in the dark but a calculated move backed by thorough market research and analysis. By testing the waters with mini outlets in malls, the company aims to gauge consumer response and fine-tune its approach accordingly. This strategic experimentation highlights Makro’s commitment to innovation and adaptability in an increasingly dynamic retail landscape.

The decision to replace four Game stores with mini Makro outlets signals a strategic consolidation of resources and focus on core offerings. With consumer preferences shifting towards one-stop shopping destinations, Makro is capitalizing on its strengths in categories such as electronics, homeware, and groceries to create a compelling value proposition for shoppers.

By diversifying its store formats, the company not only expands its reach but also mitigates risks associated with changing consumer preferences and economic fluctuations. As noted by Evans, “Makro’s small-format stores represent a smart move to adapt to evolving consumer behaviours and enhance shareholder value”.

MAKRO MAKES HISTORY: TALLEST TROLLEY STACKED IN SOUTH AFRICA

Makro has recently stamped its name in history with an extraordinary accomplishment – stacking the tallest trolley in the country. Inspired by the beloved Makro Mood TV commercial, the event took place on Leap Day, at the Centurion store. The aim of the event was showcasing a blend of creativity, magic, and community engagement.

Makro’s Tallest Trolley Stacked

Makro embarked on an exciting journey to stack the tallest trolley in South Africa within a tight timeframe. For the task, Makro teamed up with renowned magician Wian van den Berg. The clock started ticking at 1pm, and in 3 hours, 6 minutes, and 6 seconds it was all done. The towering structure reached an impressive height of 5.1 meters, comprising a staggering 284 products stacked meticulously.

The happenings were not restricted to the physical store alone. Makro ensured that the excitement echoed beyond its walls by live-streaming the event on its Facebook channel. This inclusive approach allowed customers across the nation to participate virtually. All participants had to guess the number of products in the towering trolley. Each participant stood chance to win a generous R4000 voucher.

Katherine Madley, Vice President Group Marketing at Massmart, emphasized the significance of such innovative endeavors. She it is important to stay relevant in the dynamic retail landscape of 2024.

“Remaining relevant as a retailer in 2024 requires creativity in the way you reach your customers with your propositions. The trolley reached 5.1 meters in height which equated to 284 products stacked. This was a first-ever in South Africa. We had a lot of social media engagement with over 700 entry comments on Facebook. This is an example of celebrating the abundance that Makro offers the customers. It also gave our customers a chance to join in on the fun.” Adds Katherine Madley, Vice President of Group Marketing at Massmart.

Customers present at the Centurion store were treated to a holistic experience. In the store, there was entertainment, enticing limited-time deals, and mesmerizing magic by Wian van den Berg. The event provided an opportunity for shoppers to witness history unfold before their eyes. Durin the event, customers got to indulge the bulk deals that Makro is renowned for.

In a statement expressing gratitude, Madley extended appreciation to the customers. She also tanked the Centurion store team, and various partners who contributed to the success of the event.

“We would like to thank our customers for participating online and instore. Also, our Makro Centurion store for allowing us to see this vision out at their premises, our supplier partners Easy Agency, Wian van den Berg, R.M Photography and our influential partners for collaborating to bring this vision to life,” concluded Madley.

Makro’s monumental achievement of stacking the tallest trolley in South Africa stands as a testament to its dedication to appreciating customers and making history in the retail landscape.