- 11% growth of Retail franchise outlets
- Successful product range extension to fruit, vegetables and meat; enabling customers a wider choice and increased convenience
- Improved store-opening processes, delivered three successful store openings with Cambridge Evaton achieving the biggest store opening to date
- Successful rollout of new Private Label ranges
- Significantly improved Wholesale customer delivery processes, resulting in higher order fill rates, and improved customer satisfaction
- Improvements in store standards and food safety; ensuring a better shopping experience
- Improvement in profitability in both Gauteng and Kwazulu-Natal Retail regions
- Wholesale and Retail
- Consumers have low disposable income
- Higher inflation in Food and fuel
- Weak job growth at lower-income levels
- Food inflation, particularly commodities
- Social grants
- New stores
- Rate of employment
|4.2% in 2013|
|decreased from R8,665.5 million in 2013.|
|increased from R7,838.6 million in 2013|
|Net capital expenditure|
|Up by 40.0%|
|increased from R192.8 million in 2013.|
|Increase in trading space|
|Trading area 400,775 m2|
|Trading area 399,637 m2 in 2013|
|DC space 36,654 m2|
|DC space 32,292 m2 in 2013|
- Re-organise buying structure
- Optimise store portfolio
- Improve Supply Chain and
- Logistics capability
- Focus on Saverite franchise
- Grow profitable regions
- Improve fresh food assortment
- Roll-out single platform on SAP
We anticipate a continuation of the aggressive trading from the corporate food retailers serving the low-income customer but are cautiously optimistic about our growth over the next year. The LSM 2-6 market remains highly fragmented. Masscash is well positioned to offer new retail formats and to expand our current footprint to better supply food, cosmetics, liquor, cigarettes and cellular services to this market. To ensure future growth, we will expand the wholesale range to include meat, fruit and vegetables and grow the franchise formats and expand into southern Africa.
Cambridge Food has a solid store roll-out plan over the next two years, with an anticipated 10 new store openings in 2015 and 10 in 2016,
to strengthening its fresh operating model, to its roll-out of significant IT projects, and developing store management to provide leverage
for this future growth.
Masscash Wholesale, through donations and active involvement, invested in education and nutrition initiatives during the year.
Building on our previous success, Masscash Wholesale donated a further 15 container kitchens to our school feeding initiative. The 79 kitchens provide a hygienic space for the preparation of meals for approximately 58,000 learners.
We support the inner city Day Care Centres in central Johannesburg, through the Metropolitan Evangelical Services. This ensures that young children have a safe place to go during the day. Furthermore young street adults can be rehabilitated and equipped with skills that will enable them to access the workplace.
We invested in literacy programmes allowing 1,086 scholars to enjoy access to a school library, donated to the Empumalanga Primary School in Motherwell, Eastern Cape.
- R1.6 million donation of stock to Foodbank, a 16% increase over 2013.
- Container kitchen donated to the Vosloorus community.
The Group’s partnership with Impilo Wellness Programme provides healthcare support for 2,920 employees. It offers disease management strategies, psychological counselling, general well-being services, financial and legal support and trauma counselling.
Launched Gauteng Store of Learning to develop a pipeline of managers
KZN Store of Learning, placed 54 learners in 2014
Implemented first Cadet programme in Gauteng, seven learners achieved 13 distinctions in the first semester
We supported the KwaZulu-Natal Wildlands Food For Trees project. The project encourages unemployed adults and school learners to grow indigenous trees, and exchange them for food tokens from Wildlands. Over 35,000 trees were bartered and they are used for reforestation projects controlled by Wildlands.
A 3-year programme to upgrade all stores with energy efficient lighting is expected to reduce our energy consumption by 15%.
Variety of energy-saving measures implemented including skylights and LED lights
Multiplex refrigeration system, reduces electrical consumption and the heat exchange unit generates hot water for the store
Automated monitoring and adjusting of lighting levels to reduce electrical consumption
Alarms to minimise energy wastage on fridges
Passive ventilation system reduces dependence on air conditioning in-store