Page 7 - HGR April
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NEWSLINE 5

Massmart’s
robust growth

 Against the backdrop of                   the South African consumer environ-         noteworthy given the Group’s exposure
  very low discretionary                   ment. Total Food and Liquor sales grew      to General Merchandise, which has been
   consumer spending,                      at 11.7% for the year while General Mer-    significantly impacted by low levels of
                                           chandise, which continues to be impact-     discretionary consumer spending. These
    Massmart recently                      ed by very low discretionary consumer       results also reflect our emphasis on en-
 announced its full-year                   spending, grew by 1.5%. Despite the         hancing business efficiencies, which we
results for the 52 weeks                   challenges, Massmart outperformed the       will continue in 2017 as we maintain our
                                           market in terms of General Merchandise      focus on leveraging of Group transport,
    to December 2016,                      sales. In addition, Massmart ran a num-     logistics and supply chain. We’re excited
  reporting a total sales                  ber of very successful promotions in the    by the growth of our online offering,
                                           year, such as the Black Friday promotion.   which doubled its sales in 2016, and
     increase of 7.7%.                     On Black Friday, Game experienced its       which will continue to grow in 2017 with
                                           highest ever one day sales, and Makro       the launch of Builders online”.
Comparable sales for the period in-        broke all previous online records, gener-
creased by 5.4%, with product inflation    ating the highest online sales in one day,  Key highlights
estimated at 6.7%. These results were      contributing 6% to overall sales. The year  • T otal Sales up by 7.7% (R91.3 billion)
underpinned by good margin manage-         also saw excellent sales from the Group’s   • Strong profit recovery at Game (trading
ment and excellent cost control, which     retail Food offering, which contributed to
resulted in headline earnings increasing   the strong performance from Game.             profit up 54.8%)
by 15.6% to R1.3 billion.                                                              • Online sales double
                                             Commenting on the results, Massmart       • O perating Profit before interest up
  The sales performances across            CEO, Guy Hayward said: “We have had
Massmart’s major product categories        a particular focus on operating profit in     15.5% (R2,483.4 million)
reflect the economic pressures within      recent years, and I am pleased that op-     • H eadline Earnings up 15.6% (R1,293.3
                                           erating profit continues to improve – this
                                           year saw an increase of 15.5%. This is        million)
                                                                                         Massmart reports robust growth in a
                                                                                       tough environment.

3PAGE 3                                    focus on the transformation in manu-        and knowledge exchange,” says Park.
                                           facturing.                                  ”These speakers highlighted are a taste
of how to mitigate supply chain risk can                                               of the high-quality speakers invited
also attend two workshops throughout         Speaking on ”The Emergence of the         to create an opportunity for supply
the conference. Delegates attending all    Strategic Supply Chain Leader” will         chain professionals across Africa to
three sessions will be awarded a Sup-      be Dr Steven A Melnyk, who returns          access up-to-the-minute information
ply Chain Risk and Resiliency Certificate  to South Africa to highlight the skills     on trends, solutions and services in a
from Lehigh University in Pennsylvania.    and orientations needed to transform        cost-effective manner. The event is a
                                           supply chains from tactical to strategic.   crucial part of SAPICS’ mandate to build
  Other exciting contributions include     An extremely popular and engaging           supply chain management excellence
Dr Dino Petrarolo, who will be discuss-    speaker from Michigan State Univer-         in individuals and enterprises on the
ing ”The impact of operational excel-      sity, Melnyk will also host a workshop      African continent.”
lence on the looming transformation        on value-driven process analysis, for
in manufacturing”, which explores the      delegates to learn how to map process-        He concluded by saying that this
impact of smarter robots, 3-D printing,    es and enhance value.                       capacity was especially vital for com-
big data, machine-to-machine com-                                                      panies looking for growth opportunities
munication and mobility with specific        ”There are many more highlights in-       in faster-growing economies in other
                                           corporated into the programme, which        parts of Africa and abroad.
                                           spans two days of intense learning

                                                                                       APRIL 2017 | HOME GOODS RETAILER
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