Lower prices boost Massmart sales

Massmart, which runs stores such as Makro, Game and Builders Warehourse, said overall product deflation was at 0.4% while comparable store sales inched up 2.6%.

The company said its Masscash unit, which comprises CBW, Jumbo and Shield stores booked 14.5% sales, while its Game and Dion Wired Stores lifted sales by 9.5%.

Massmart, which operates in 14 countries in Africa, said its building materials grew sales by 14.5%.

Retailers are back in favour as the economy moves out of a recession and lower interest rates bolster disposable income, but the outlook for the rest of the year is dicey due to high consumer debts and rising unemployment.

Shares in Massmart were down 0.71% at R120.23, recouping some of the losses suffered before the trading update.