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Massmart explains store closures and retrenchments in the face of a R1.3bn loss

27 February 2020 7:30 PM
Tags:
Walmart
Massmart
Game
Makro
Builders Warehouse
Dion Wired
Massmart has withheld their dividend as it swings to 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
FILE: A Makro store. Picture: Massmart.

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This article first appeared on 702 : Massmart explains store closures and retrenchments in the face of a R1.3bn loss


27 February 2020 7:30 PM
Tags:
Walmart
Massmart
Game
Makro
Builders Warehouse
Dion Wired

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