Massmart shifts to bigger, upgraded Distribution Center enhancing service delivery

SOUTH AFRICA – South African retailer Massmart, has built a new state-of-the-art Distribution Centre (DC) in Brackenfell, Cape Town, featuring an eye-catching curved and seamless roof, measuring over 60 000m2. Under the roof, the DC is customized to suit Massmart’s needs with innovative modular mezzanine racking, allowing for easy expansion of picking areas to accommodate varying stock demand. With a capacity of 53 000m2, this is the second largest DC in the Massmart group, and a significant upgrade from the previous Airport DC that had a capacity of 19,500 m2.…

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Walmart’s Massmart to review operations outside Southern African region, offloads non-core businesses

SOUTH AFRICA – Massmart, Walmart owned South African retailer with presence in 13 countries in Africa has indicated that it will be reviewing its operations outside the Southern African region in the second quarter of 2021, as part of its turnaround plan. This is in addition to its plan of offloading its food retail outlets Cambridge Food, Rhino and Masscash comprising The Fruitspot and a meat processing facility to focus on high returning businesses. To this end the retailer has appointed Barclays to facilitate the disposal of the non-core businesses,…

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Massmart sells eight cash and carry stores, seeks to close more outlets to stay afloat

SOUTH AFRICA – The Competition Tribunal of South Africa has approved Walmart owned South African retailer, Massmart, to sell eight of its Masscash stores to unlisted Johannesburg-based Devland Cash and Carry, for an undisclosed amount. The Masscash division consists of a wholesale segment with cash and carry food and cosmetics businesses, and retail food outlets which target the lower consumer groups. Its wholesale division consists of CBW, Jumbo Cash and Carry, Trident and Shield stores whilst the retail division is consolidated under the Cambridge Food banner and the Rhino Group.…

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Massmart reports 7.7% decline is full year sales despite slight improvement in fourth quarter

SOUTH AFRICA – Massmart, Walmart owned South African retailer has reported that its group sales for the 52 weeks ended December 27 fell 7.7% to R86.5 billion (US$5.8 billion) while comparable store sales decreased by 7.5%, as a result of Covid-19 trading restriction. The economic impact of the pandemic on consumer spending was evidenced by a general reduction in foot traffic. The company has indicated that during the traditional November 2020 Black Friday, trading was softer than those seen in 2019. The company’s extension of Black Friday promotions throughout the…

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South African retailer Massmart gets US$230m backing from parent company Walmart

SOUTH AFRICA – South African retailer Massmart has received a R4 billion (US$230m) inter-company loan from its parent company Walmart, an American multinational retail corporation to help it offset liquidity constraints triggered by the COVID-19 pandemic. With the backing, Massmart, which owns Makro, Game and Builders Warehouse retail outlets has indicated that the group now has sufficient resources to meet its obligations, reports IoL. “In addition to the facility support provided by local financial institutions, the group secured a R4bn inter-company loan from Walmart Inc to provide additional headroom in the…

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Walmart’s Massmart to close non-performing stores in South Africa

SOUTH AFRICA– South African retailer Massmart has decided to close all of its non-performing stores, as cash-strapped consumers battle with high unemployment, modest wage increases and higher average fuel and utility prices. Massmart, majority-owned by Walmart, said management will close trading at 23 Dion Wired Stores on March 19 and will decide whether to cease trading at 11 Masscash stores. Masscash stores consists of a Wholesale Division with cash and carry food and cosmetics’ businesses, and a Retail Division which consists of food outlets which target the lower LSM groups.…

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South African retail giants sign the first plastics pact in Africa

SOUTH AFRICA – The South African (SA) Plastic Pact, a collaborative platform aimed to tackle plastic waste and pollution has been launched developed by the World Wide Fund for Nature (WWF-SA) in partnership with the South African Plastics Recycling Organisation (SAPRO) and the UK’s WRAP. The SA Plastics Pact will be managed and delivered by GreenCape, with the founding members committed to a series of ambitious targets for 2025 to prevent plastics from becoming waste or pollution. GreenCape is recognised as a trusted centre of expertise for the green economy…

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South Africa’s retailer Massmart reports half year loss on increased costs

SOUTH AFRICA – South African retailer, Massmart reported a net loss of R832.4m (US$54.43 million) in the six months to end-June on increased costs that weakened growing sales. The Walmart-owned retailer, whose brands include Makro and Game, said that net finance costs grew to R909.6 million (US$59.49m) from R299.7 million (US$19.6m) a year before as borrowings rose sharply. Massmart said tough trading conditions in South Africa and other African markets weighed on sales growth and placed pressure on margins. Despite a higher depreciation and amortisation charge, asset write-downs, foreign exchange…

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South Africa’s Masscash chief executive Kevin Vyvyan-Day to resign

SOUTH AFRICA – Masscash, the food, liquor and general merchandise wholesale division of Massmart, has announced the resignation of the its chief executive officer, Kevin Vyvyan-Day, with effect from the end of August. Massmart Holding said in a trading update that Vyvyan-Day will be replaced by interim chief executive Deepa Sita. According to the trading update, Masscash is expected to report a trading loss of between US$12.25 million (R180m) and US$14.3 million (R210m) compared to last year’s trading loss of US$0.27 million (R4m). “Despite improved sales in the wholesale business,…

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Massmart Holdings subsidiary Game stores opens new branch in Kenya

KENYA – Game Stores, a subsidiary of South Africa’s retail giant Massmart Holdings, has opened its third outlet in Kenya at Kisumu’s Mega City Mall, in western region of the country. The branch, which is the retailer’s first outlet outside the country’s capital, signals Games’ continued expansion in Kenya and adds to its currently operating stores in Garden City and Karen Waterfront within Nairobi. Massmart, which also owns Makro, Builder’s Warehouse and CBW retail brands, had earlier this year announced plans of opening 47 new stores between 2019 and 2021.…

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