By Siyanda Mthethwa

JOHANNESBURG, Sept 9 (Reuters) - U.S. retailer Walmart ( WMT )

will launch its first branded stores in South Africa

this year, it said on Tuesday.

The move by Walmart ( WMT ), which already owns South African retail

group Massmart, places it in direct competition with established

domestic retailers including market leader Shoprite,

Woolworths and Pick n Pay.

Online, it will be going head-to-head with Amazon ( AMZN )

and market leader Takealot.com.

"This strategic move underscores Walmart's ( WMT ) commitment to

making high-quality, affordable merchandise accessible to more

customers," a Walmart ( WMT ) statement said, adding that it has

recruited small and medium-sized African based suppliers.

The South African Walmart stores will offer a wide range of

merchandise, fresh groceries, household essentials, apparel and

technology products, said President and CEO Kath McLay.

"Walmart ( WMT ) will also offer a variety of locally sourced

products. By partnering with South African suppliers and

entrepreneurs, we aim to bring our signature every day low

prices and global standards to the market while celebrating the

country's rich culture," McLay added.

The company said several store sites are under development,

with official opening dates expected to be announced in October.

The company's Massmart brand owns the Makro and Game retail

chains, which sell similar merchandise to Walmart ( WMT ), and also owns

a building materials chain Builders Warehouse.