Massmart has evolved a business model that empowers its Divisions to take trading decisions suited to their individual operating needs but within a strategic operating and financial framework set by the Group.
- The framework guarantees consistent compliance with the best governance standards and national legislative requirements. It commits each Division to implementing Massmart’s core strategy of being a high-volume, low-margin distributor of quality branded consumer goods for cash, and ensures expansion plans add net value to the Group.
- At the same time, Divisions can extract greater value from being part of a larger Group with greater access to goods and services or negotiating better terms and rebates with suppliers and service providers. The Divisions are differentiated as retail or wholesale formats that address different customer and market profiles.
- Decentralised decision-making is given effect through a Group Executive Committee reporting to the Group Chief Executive Officer (CEO). The Committee’s members comprise the CEOs/Managing Directors of Massmart’s four operating Divisions and a Group Executive from each of Massmart Holdings, Channel and Shared Services. Massmart Holdings’ Executives are also represented on each of the four Divisional boards as non-executive directors.
The model operates through the following four units:
Massmart Holdings performs the Group management role and defines the strategic and broad operating principles that guide the Group’s activities.
Massmart Channel consists of formal trading and functional forums where ideas on collaboration across Divisions are shared.
Massmart Shared Services implements collaborative agreements reached by Channel. The most important are Group supplier negotiations for all products sold across the Group.
Massmart’s Divisions, who report directly to the Chief Operating Officer, comprise Massdiscounters, Masswarehouse, Massbuild and Masscash.