Massmart explains store closures and retrenchments in the face of a R1.3bn loss
Massmart swung into a R1.3bn loss in its year to end-December, withholding its dividend as local consumers switched to lower-margin goods in the current slow economic environment.
The company's brands include Makro and Game, Dion and Builders Warehouse.
It's been an incredibly busy last few months of getting my arms around the business but one of the opportunities I've had before I arrived was to talk to a lot of people, to review the situation from a distance. By the time I hit the ground, I was able to diagnose problems and to begin to build the turnaround plan which I believe is going to position us for more sucess in the future.Mitchell Slape, CEO, Massmart
What about trade unions who are not going to like the fact that stores will be closed and workers losing jobs?
The section 189 process...it's not a process we relish but you know in business, especially when you are confronted with stores that are loss-making and not likely to recover you have to make a tough call. We do not anticipate any further store closures, we've taken the hit.Mitchell Slape, CEO, Massmart
I think we are now in circumstances in which we have to drive greater cost-saving. We are not in a position to rely on a buoyant economy. I think we have a lot of confidence in our approach.Mitchell Slape, CEO, Massmart
Being part of the Wallmart family means we have great links into logistics and sourcing in China. So I have the opportunity, multiple times in the week, to keep my finger on the pulse of what is happening there. We mainly see delays. But I am still convinced we can make it through the season in good shape.Mitchell Slape, CEO, Massmart
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
This article first appeared on 702 : Massmart explains store closures and retrenchments in the face of a R1.3bn loss
Busa's Martin Kingston, Standard Bank Chief Economist Goolam Ballim and Rand Merchant Bank market strategist John Cairns weigh in.Read More
Eskom says load shedding is highly unlikely during the 21-day national lockdown, as the demand for electricity has dropped significantly.Read More
Kieno Kammies interviews FNB CEO Jacques Cilliers about his offer to help clients get through this time with livelihoods intact.Read More
'Misinformation,' says SABC chief operating officer Ian Plaatjies, adding that 'Bemawu is contradicting itself.'Read More
A man allegedly locked up 14 employees in a factory since Monday last week, forcing them to make facemasks without pay.Read More
No moving is allowed and attorney Marina Constas advises trying to negotiate with landlords and banks for payment arrangements.Read More
Adriaan Bester (Avbob) explains what is likely to happen if someone in your household passes during these extraordinary times.Read More
The bank is extending its debt repayment holiday to personal account holders to help them through the Covid-19 crisis.Read More
The Motsepe family announced details of the donation on Saturday. Several hundred million rand will be available 'immediately'.Read More