Pick n Pay ramps up Africa expansion

Wal-Mart is in talks to buy South Africa's discount retailer Massmart, a move that would give the U.S. firm a big presence in Africa and pressure local players. Pick n Pay, South Africa's second-largest food retailer, posted a 7 percent decline in first-half profit yesterday, and said it plans four new stores in neighbouring Zambia over the next 12 months.

It also plans to enter Mauritius, Malawi and Mozambique during the same period. "Competition is going to be tough," Chief Executive Officer Nick Badminton told Reuters following an investor presentation. "Wal-Mart is a big, big gorilla but it is not unbeatable." The Cape Town-based company has 26 stores in countries outside of South Africa including Namibia, Lesotho and Zambia, where it currently has one store.