Massmart stock dips as sales disappoint
Business Day - May 9th 2012, 07:52
Markets were disappointed by Walmart-controlled Massmart â€™s sales update released yesterday, with its shares falling as much as 2,5% to reach their lowest level in almost a month.
Sales for the 44-week period to April 29 rose 14,7% to R51,7bn from the previous period, said the company, which is 51% owned by the US retailing giant.
Comparable store sales grew 8,9%, while inflation for the period is estimated at 1,4%.
The performance was disappointing, said Ryan Wibberley, an equity dealer at Investec Asset Management. "Markets were expecting something closer to 16%," he said.
Massmartâ€™s stock fell for a second day, ending the day 2% lower at R164,20, its lowest since April 10. The performance was in line with an overall weaker JSE, which was down 1,2% on continued concern over the global economy.
For the 26 weeks to December 25, Massmart reported sales growth of 15%.
In a similar period, its rival Shoprite recorded 13,2% growth.
Walmartâ€™s bid for a controlling stake in Massmart was inspired by the retailerâ€™s hopes of using SA as a stepping stone into the rest of Africa, countering slow growth in the US. In its domestic market, Walmart reported a revenue rise of 1,5% in the year to January.
As part of its strategy to increase its African footprint, Massmart also announced board changes yesterday.
CEO Grant Pattison will have the task of focusing on local and African growth priorities, including the implementation of Massmartâ€™s retail food strategy.
Other board changes included shifting Guy Hayward, who had been chief financial officer since 2001, to the role of chief operating officer, Massmart said. Ilan Zwarenstein, group finance executive since 2006, assumes the role of financial director, and will be appointed to the board and the Massmart executive committee.
Massmart stores will be closed on Sunday, 15 December
10/12/2013 - 08:37
Massmart Holdings will close its stores on Sunday, 15 December 2013.
Makro South Africa awarded for excellence in energy efficiency initiatives
09/12/2013 - 13:31
This week, Makro SA scooped a prestigious eta award for its energy efficient new generation stores at Eskomâ€™s 24th eta Awards ceremony.
Massmart launches Builders Superstore, a new format for the DIY market
05/12/2013 - 11:58
Massmartâ€™s anticipated new format Builders Superstore opened on 29 November 2013 in Gauteng. A total of 58 job opportunities were created with the opening of the two new stores in Tembisa and Evaton. The new format will service customers with homes situated in dense residential, township, rural and developing areas, and will be conveniently located near commuter nodes
Walmart warns of flat festive sales
18/11/2013 - 10:53
Washington - Walmart reported on Thursday a 2.8% year-on-year rise in third-quarter net profit, but warned that sales during the crucial holiday shopping season are expected to be "relatively flat."
First 100% LED-lit Walmart opens, United States
06/11/2013 - 09:37
New York -- The first Walmart to be entirely lit with LEDs has opened, in South Euclid, Ohio, just outside of Cleveland. The store will serve as a model for environmentally friendly design for future locations, with 100% LED lighting, electric vehicle charging stations in the parking lot and more.