Massmart sales destroyed by riots and liquor bans

Makro and Game owner Massmart reported that its general merchandise sales, its second-largest sales category, were 9.7% lower in the fourth quarter of 2021 compared to the same period in 2020.

“Sales were impacted by a variety of factors including Covid-19 alcohol trade restrictions, lost sales from 43 stores damaged during the July unrest in Gauteng and KwaZulu-Natal, chain disruptions disruptions and the impact of global supply shortages,” Massmart said in a sales update on Friday.

These local and global supply chain shortages, coupled with the two riot-affected Makro stores in KwaZulu-Natal, led to a decline in its general merchandise sales.

Total group sales for the 52 weeks ended December 26, 2021 were R84.9 billion, down 1.9% from the same period in 2020.

Comparable store sales increased 1.7% compared to the same period in 2020.

Same store sales are stores opened or closed during the period and adjusted for the impact of stores damaged by civil unrest.

Makro – 6.6% increase

“At Makro, total sales of R29.0 billion for the 52-week period were 6.6% higher than in 2020, while comparable sales were 10.6% higher,” Massmart reported.

“Alcohol sales were particularly dynamic, with comparable sales growth of
39.8% compared to the same period in 2020, while comparable general merchandise sales increased by 7.2% compared to the same period in 2020.”

Massmart said business activity in the hotel and restaurant sector remains below normal.

“This industry has been affected by various levels of trade restrictions as well as restrictions on international travel during the year,” he noted.

Gaming — down 8.1%

At Game, total sales of R15.3 billion for the 52 weeks were 8.1% lower than the same period in 2020. Comparable sales were 5.6% lower than in 2020.

Game’s total South African store sales decreased 6.9%, while comparable South African store sales decreased 3.7%.

“The gaming supply chain was particularly susceptible to the Unrest-related supply chain disruptions which resulted in insufficient inventories of some appliances and home electronics in the post-Unrest period,” Massmart said.

This situation was exacerbated by lower inventory levels on key ranges of certain electronics and home appliances due to global supply shortages.

Wholesale Cash & Carry and Manufacturers

Massmart’s Wholesale Cash & Carry business sales of R19.1 billion for the 52-week period were 6.3% lower than the same period in 2020. Comparable sales were lower by 1. 6%.

Massmart said this was primarily the result of declining sales in the hotel, restaurant and catering sector, which continues to be significantly impacted by the negative consequences of the Covid-19 pandemic.

Total automaker sales of R14.9 billion for the 52 weeks were 7.1% higher than the same period in 2020. Same-store sales rose 5.2%.

“Retail sales continue to post strong levels similar to those seen throughout the year,” Massmart said.

“Commercial sales to contractors remained subdued, due to the slow Covid-19 restart, which impacted large commercial construction projects and government infrastructure development, both of which remain at low levels. levels.”


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