Massmart sells non-core food assets to Shoprite for R1.36bn
South African retailer Massmart said on Friday it is selling its noncore food assets to peer Shoprite Holdings for R1.36-billion as it focuses on high-returning businesses.
The retailer, majority-owned by Walmart, is in the middle of a turnaround plan that has moved beyond just shutting underperforming stores and introducing clothing in place of fresh and frozen food at its Game chain.
It is now exiting fresh food on a wider scale, except at its wholesale Makro chain.
"The sale marks another step in the group's portfolio optimization process and will, amongst other benefits, free up management time to enable increased focus on leveraging Massmart's core merchandise and market strengths," Massmart CE Mitch Slape said.
The deal will see ownership of Cambridge Food, Rhino, and Massfresh, which is comprised of The Fruitspot and a meat processing facility, as well as 12 Cash & Carry stores, transferred to Shoprite Checkers, Massmart said.
Financial proceeds will be used to pay down drawn bank facilities, invest in e-commerce and also in general merchandise, do-it-yourself and wholesale food and liquor, Massmart's core businesses, Massmart said.
The transaction, consisting of 71 food stores, 43 liquor shops and a meat processing facility, is expected to close early in the first quarter of 2022.
For Shoprite, a leader in high-volume and discount retail, the deal will give it a bigger piece of the R595-billion food and grocery retail market, of which less affluent shoppers make up the overall market.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Columbus Stainless, based in Middelburg, Mpumalanga, is Africa’s only producer of stainless steel flat products. In addition, Columbus is the only...
VISIT SHOWROOM
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
