By Siyanda Mthethwa

JOHANNESBURG (Reuters) -U.S. retailer Walmart will launch its first branded stores in South Africa this year, it said on Tuesday.

The move by Walmart, 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 and market leader Takealot.com.

"This strategic move underscores Walmart's commitment to making high-quality, affordable merchandise accessible to more customers," a Walmart 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 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, and also owns a building materials chain Builders Warehouse.

(Reporting by Siyanda MthethwaEditing by Nqobile Dludla and David Goodman)