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Massmart reports lower sales owing to Covid-19

18th May 2020

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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South Africa’s Covid-19 lockdown had a significant impact on normal trading patterns for wholesale and retail group Massmart, with total sales for the 19 weeks ended May 10, amounting to R28.2-billion, or 11.9% lower than the same period last year.

Comparable store sales for this period were 12.1% lower than last year, and sales from South Africa, in particular, amounted to R25.3-billion, or 13.1% lower than last year, with comparable store sales decreasing by 13.2%.

Total sales from Massmart’s former South African stores amounted to R2.9-billion, 1.3% higher than last year, with comparable store sales decreasing by 0.3%.

The numbers were influenced by the “intensified pressure” resulting from the Covid-19 trading restrictions, which increased the daily focus on liquidity and cash flow management.

In line with regulations and amendments for the lockdown, Massmart formats that were registered with the Department of Trade, Industry and Competition to enable trading activity during the level 5 lockdown period included Makro, Wholesale Cash & Carry stores, Game, Shield Buying Group, Rhino and Cambridge Food.

These formats continued trading during this period, although trading was restricted to essential goods only.

Consequently, Game and Makro did not trade in general merchandise, save for those categories falling under the definition of basic and essential goods.

Taking the regulations into account, Massmart was unable to trade in the majority of general merchandise, home improvement and liquor products for most of April, making these “untradeable product categories” which represent a significant portion of the company’s overall merchandise offering.

In a statement on May 18, Massmart noted that the company remains concerned about the impact of a prolonged lockdown and limited trading environment on the South African economy and population.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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