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Massmart to focus on store growth in Africa
FMCG SUPPLIER NEWS
Ventures Africa - May 30th, 10:33
VENTURES AFRICA. JSE-listed general retailer, Massmart, on Wednesday said it will start paying more attention to store growth in South Africa and sub-Saharan Africa.
In 2010, the world’s biggest retailer, Wal-Mart, acquired Massmart for $2.3 billion.
This has given Wal-Mart a huge presence in South Africa and has prepared the company for the further expansion into Africa. The US retail giant will also use this acquisition as a springboard into Africa.
Grant Pattison, the CEO of Massmart, addressing the annual general meeting of the firm on Wednesday, told shareholders that new stores have been opened in South Africa and other neighbouring countries in the first 21 weeks of this year.
“We have had new store openings in Makro in Alberton, Gauteng, Builders Warehouse in George, Western Cape and Saverite in Xai Xai, Mozambique,” Pattison said.
“Over the remainder of the financial year to December, we will open 27 stores, including a Makro in Amanzimtoti, Durban, and a Builders Warehouse store in each of Botswana and Mozambique.”
The firm has just finished buying seven Makro properties that were “previously lease-held” and has also won a loan from Wal-Mart to pay for this acquisition.
Massmart is expecting sales growth to stay flat for the remainder of the 12 months to December. The firm has strategies to boost sales, maintain gross margins and cut costs.
The fall in sales growth for the first 21 weeks of the financial year impacted all product categories and across all South African geographies.
“With the exception of one country, stores in Africa are trading well,” Pattison told shareholders, without naming the specific country.
From From VenturesAfrica.com
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MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Group�...Click here to read more about Massmart |
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MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Group�...Click here to read more about Massmart |
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