How Whitey Basson Outplayed Walmart to Protect Shoprite from a Pick n Pay Takeover

Fifteen years ago, global retail giant Walmart tried to enter the South African market in a big way. But one man—Whitey Basson—stood in their path. The then-CEO of Shoprite used sharp strategy and deep market insight to prevent what he saw as a looming threat: a potential Walmart acquisition of Pick n Pay, a move that could have changed the face of South African retail forever.

Instead, Walmart walked away from that deal—and bought Massmart, which owned Makro and Game, in 2011. That decision, as history has shown, worked out far better for Basson than it did for Walmart.

The Strategic Chessboard of Retail

At the time, Shoprite and Pick n Pay were neck-and-neck, but Pick n Pay—under the leadership of Sean Summers—was gaining ground. Its rapid revenue growth made it an attractive target for Walmart. If the American retail titan had succeeded in acquiring Pick n Pay, it could have posed a serious threat to Shoprite.

Basson knew this. So, when Walmart came knocking, inquiring about a possible Shoprite acquisition, he didn’t just decline—he redirected them.

“I told them we weren’t interested in becoming a foreign subsidiary,” Basson recalled, “and if they wanted to talk ownership, they’d have to speak to Christo Wiese.”

As expected, Wiese shut the door. But Basson didn’t stop there. He spent two hours with Walmart’s team pitching Massmart—positioning it as the smarter choice over Pick n Pay.

It worked.

Why Walmart’s Move Didn’t Work Out

Walmart ended up buying a controlling stake in Massmart for R16.5 billion. But the move didn’t shake up the industry in the way many had expected. In fact, it was far from the success Walmart had enjoyed in other countries.

Basson had one more trick up his sleeve: ensuring Massmart stayed listed on the JSE. That way, Walmart couldn’t aggressively cut prices—something they might have done if Massmart were privately held.

“Had they gone unlisted, they could have wiped us out with discounts,” said Basson. “But being listed made them more accountable and less flexible.”

What followed was a series of missteps. Game Stores struggled under new management. Strategic decisions backfired. Within a few years, Walmart was already retreating. In 2021, Shoprite acquired parts of Massmart’s portfolio—including Cambridge Food and Rhino stores—for R1.36 billion.

By 2022, Walmart had bought out all Massmart shares, and the company delisted from the JSE—marking the end of its high-profile entry into South African retail.

A Battle of Titans and the South African Edge

Whitey Basson didn’t just protect Shoprite. He helped maintain a uniquely South African competitive retail space.

“Never fight a small war with your entire defence force,” he said of Walmart’s strategy. His message was clear: understanding the local landscape beats global muscle any day.

South Africa, with its razor-thin margins, complex logistics, and demanding customers, remains one of the toughest markets in the world. And Whitey Basson, once again, proved why he’s not just a businessman—but a master tactician.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com