Massmart to offload 14 Game stores in East, West Africa as part of restructuring process

SOUTH AFRICA – Consumer goods distributor Massmart says it has put up 14 Game stores in East and West African stores for sale to focus on its core strengths as the group losses narrowed during the half-year ended June 2021. Massmart has begun a formal sales process to divest in five Game stores in Nigeria, four in Ghana, three in Kenya, one in Uganda and one in Tanzania. Chief Executive Mitchell Slape has revealed that the company was currently in discussion with potential purchasers to take over the stores. “We…

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Massmart’s half-year losses narrow as turnaround strategy takes shape

SOUTH AFRICA – Struggling South African retail giant Massmart is starting to see returns from its turnaround strategy with losses narrowing by 8.1% in the first half of 2021 financial year.  According to a release from the company, the group incurred a net loss of R1. 0725 billion (US$74.26 million), a slight improvement from the prior year loss of R1.1668 billion (US$115.5 million).   Even with the company recording net losses, other parameters show that the much-vaunted turnaround strategy under the captainship of CEO Mitchell Slape is starting to yield some results.   Massmart for instance recorded a…

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Massmart eyes online shopping, delivery service provider OneCart to bolster eCommerce capabilities

SOUTH AFRICA – In line with its strategy to invest in and accelerate its e-commerce presence, South African retailer Massmart has entered into negotiations to acquire a controlling stake in OneCart, privately owned on-demand grocery retail marketplace and logistics platform. The move is aimed to beef up its e-commerce capabilities, a key focus that the retailer has been investing heavily in online shopping. This follows its recent confirmation that it has entered in a deal to sell its Cambridge Food and Rhino Cash & Carry chains, together with parts of…

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Massmart disposes non-core food units to Shoprite’s Checkers for US$89m

SOUTH AFRICA – Shoprite’s grocery unit Checkers has come to the rescue of South African retailer Massmart, by entering into a deal to acquire the rival’s non-core food assets for R1.36 billion (US$89m). The sale businesses consist of wholesale and retail chains that are all focused on high-volume and low-cost distribution and are each reliant on high volumes and operational excellence as the foundation of price leadership, in the distribution of mainly branded consumer goods for cash. Walmart-owned Massmart is currently in the middle of a turnaround that has now…

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South African retailers soar above riot disruptions, commence rebuilding, restocking

SOUTH AFRICA – South African retailers are working round the clock to replenish shelves with groceries, food and other essential supplies in hundreds of stores which were looted in one of the country’s worst unrest in years. Supermarket owners have indicated that they are racing to keep stores unaffected by the violence stocked, as some shoppers were stripping shelves with panic buying, though blocked roads and disruptions to supply chains were hampering their efforts. In the affected areas i.e., KwaZulu-Natal and Gauteng, retailers are gearing up to rebuild the affected…

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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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