The Massbuild formats consist of:
- Twelve new stores opened in 2014, of which four were relocations, including the flagship Builders Warehouse Rivonia store and Builders Warehouse Matola, the first full-size Builders Warehouse store in Mozambique, both of which have achieved exceptional results.
- 553 new jobs created in 2014
- Continued growth in operating profit in Builders Warehouse and Builders Express
- Improvements in productivity and transport contributed to savings in the Gauteng Distribution Centre
- Conversion of the Western Cape facility into a regional distribution centre resulted in a significantly higher throughput
- The economic environment and slowing government expenditure on infrastructure
- Availability of real estate for new stores
- Residential property prices and housing growth
- Price/value perception
- Interest rates
- Consumer confidence and disposable income
- New stores
|4.1% in 2013|
|decreased from R5,212 million in 2013.|
|decreased from R4,857.4 million in 2013.|
|Net capital expenditure|
|Up by 7.9%|
|increased from R275.1 million in 2013.|
|Increase in trading space|
|Trading area 436,538 m2|
|Trading area 410,546 m2 in 2913|
|DC space 61,733 m2|
|DC space 61,733 m2 in 2013|
- New store roll-out; grow South Africa and Africa store footprint.
- Optimise Builders Trade Depot by focussing on inventory range and leveraging IT platform.
- Optimise Superstore offering and grow the brand.
- Extend and optimise the supply chain network.
- Builders’ single brand alignment rollout – rebranding effort in Builders Trade Depot and Builders Express.
- Focus on Trade Customer and Business-to-Business
- Private label expansion: continue with roll out of key programmes.
Massbuild has now entered an accelerated growth phase with the aim of increasing its footprint by opening new stores in South Africa and southern Africa. Furthermore the division is intent on increasing its market penetration through its fourth format, Builders Superstore.
Massbuild’s objective remains to be South Africa’s market leader in Home Improvement, DIY and Building Materials.
Massbuild aims to make a relevant and notable contribution to the social development agenda by investing in early childhood development, education and training, women’s empowerment and nutrition.
Build a classroom
We embarked on an ambitious venture to build 15 classrooms at schools throughout the country and managed to complete nine in 2014. Since its inception in January 2014, this project has seen an investment in excess of R2 million.
Ripples for Good
We teamed up with the non-profit organisation, Ripples for Good in 2011 and this engagement has evolved from assisting with maintenance projects in schools to undertaking school refurbishments. In 2014 we managed to reach 100 schools.
We celebrated our new stores by adopting a school in each community where a new store was opened. For example, when the new Rivonia store opened, Sefikeng Primary School received a cash donation to assist with the upkeep of their veggie tunnel donated by Massbuild in 2012.
Mayibuye Primary School in Tembisa received a donation of 120 desks and chairs. Protea Glen and Illinge Secondary Schools each received a donation of R50,000 toward their construction requirements. Another R50,000 was donated to Cosmo City West Primary School to be used towards their kitchen makeover.
Massbuild believes in building a sustainable business by continually investing in its human capital. In 2014 a total of R29.8 million was spent on Learning and Development. Focus is on Leadership interventions where Managers are enrolled on programmes through either Massmart Corporate University or other external tertiary institutions. We also capitalise on SETA-funded leadership programmes. Skills are also imparted onto Management through online interventions.
We have had 216 people on various 12-month Learnership Programmes.
Business finance courses are also run for all levels of the organisation ranging from junior non-supervisory level to senior management level (455 attended). For team members in non-management roles, the focus is on specialist product training. In order to ensure the business adheres to good governance, training is also conducted in the areas of Compliance and Anti-corruption; Ethics; Employment Equity; and Orientation.
Priority is given to the advancement of women in the operations’ environment and to this purpose the Massbuild CEO’s Women’s Council Mentoring Programme, in which 15 mentors and 13 mentees attended various workshops and interventions throughout the year, was established in 2014. New mentees will be added to the programme annually.
We are committed to minimise our impact on the environment by:
- Using natural light and efficient LED lighting systems to save energy
- Investing in air-conditioning technologies that do not emit greenhouse gases
- Recycling our bulk packaging, paper and plastic
Our new Rivonia store has been fitted with high bay LED lights that have reduced consumption per light by 60%. The roof is fitted with daylight harvesting domes that will eliminate the necessity to have all the lights burning in the store. A state of the art Building Management System has been installed to regulate the switching on of lights in the store when the daylight harvesting domes do not have sufficient light inside the store. The system will also control the air conditioners in the store and regulate the temperature. This will also alleviate maximum demand spiking .