Massmart on the move

Massmart profit up 38%

Massmart is showing other retailers how it should be done despite tougher trading conditions for all retailers earlier in this year.

 

Massmart reported a 38% increase in its headline earnings for its financial year ending 24 June 2012, it said on 22 August 2012. “Massmart's first year as a Walmart subsidiary has delivered strong sales growth,” the company said in a statement. Sales grew by 15,6%. “Trading space increased by 7,3% to a total of 1,350,300 square metres and the group now has 348 stores (with 25 stores opened, 15 acquired and five closed).” Massmart CEO Grant Pattison said: “The results reflect the group's continued investment for growth across all divisions, but specifically for food retail. “This has driven sales and market share growth, while suppressing margin growth in the short term.” He said Massmart's high comparative sales growth suggested consumers were “in pretty good shape”.  The retailer had seen an increase in competition for market share in most product categories. “Most major retailers are being highly innovative in their search for growth, whilst independent retailers remain nimble, exploiting gaps in the market,” he said.

 Source:

Business Report, dated 22 August 2012