Africa-Press – South-Africa. In a trading update for the 19 weeks to 8 May, Massmart reported a 0.2% fall in its sales, which came to R30.4 billion.
Both Game and Builders saw declining sales, but Makro saw its sales grow by 6.7% compared to the same period in the previous year.
“Whilst food and liquor sales have performed well, sales relating to general merchandise, specifically in Makro, declined on the prior year period as cash strapped consumers focused their spending more toward non-durable items,” the group said.
Compared to the same period in 2019, sales at Makro increased by 6%.
Builders saw a 3.9% fall in total sales on the back of an “exceptionally” strong base in 2021.
“Trade sales continue to be challenged by the slow recovery of the commercial construction industry, whilst general home improvement market growth is slowing compared to the exceptionally strong Covid-19 induced growth of the last 24-month period.”
Compared to the same period in 2019, total sales at Builders grew by 5.9%.
Sales at Game dropped by 3.7%, impacted by weaker sales of general merchandise, as the pressure on disposable income resulted in consumers shifting their spending in favour of non-discretionary items. Sales of Game stores outside of South Africa dropped 12% – due in part to regional supply chain challenges.
Total sales at its Cambridge stores dropped 19% to R2.2 billion, hit by civil unrest in July 2021. Stores impacted and re-opened have not re-introduced all products, the company said.
One Makro store in Pietermaritzburg has not yet re-opened and is currently under re-construction following the significant damage suffered during the July 2021 unrest.
Walmart-owned Massmart announced the sale of Cambridge Food, Rhino and Massfresh to Shoprite for R1.36 billion.
Prices across the Massmart group increased by 3.6%, primarily in food and DIY.
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