Massmart reports lower sales owing to Covid-19
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.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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