- Strong profit growth – now generates more than R1 billion profit before interest and tax.
- Makro.co.za General Merchandise and Liquor online offering launched
- Continued share gains as we improve our Food retail offering
- Achievement of Payment Card Industry DSS compliance certification, to ensure on-going secure credit card processing
- Introduction of the Baby category
- Fresh fruit and vegetable offering across most stores (16 stores)
- Working capital and aged inventory levels improved across all 3 merchandise divisions
- Mature stores’ profitability
- Employment Equity profile of executive and senior management teams
- Use of customer and market data to better optimise promotional and pricing activity
- Continued aggressive trading practices from independent wholesale competitors
- Availability of real estate for new stores
- Product deflation/inflation
- Price/value perception
- Interest rates
- Consumer confidence and disposable income
- New stores maturing
|2.1% in 2013|
|decreased from R7,166.8 million in 2013.|
|increased from R6,587.8 million in 2013|
|Net capital expenditure|
|Down by 79.6%|
|decreased from R344.8 million in 2013.|
|No change in trading space|
Trading area 195,794 m2
|Trading area 195,794 m2 in 2013|
|DC space 51,300 m2|
|DC space 51,300 m2 in 2013|
The 2015 strategic focus is to bring new and young stores to optimal maturity, while ensuring stores leverage scale, and drive down costs. We will do this by:
- Improving fulfilment capabilities, to better serve online and commercial customers
- Investing in the instore and online customer experience, whilst balancing the need to achieve scale and operate at lowest possible cost per transaction
- Continuing to improve the Food offering to retail customers, and deepen the Fresh and Butchery offering
- Growing market share in Food and Liquor
- Optimising working capital through replenishment and supply chain investments
- Driving value through data-led insights into customer behaviours and needs
- Investing in technology to better serve customers, manage our supply chain and coordinate commercial sales and fulfilment
Makro remains focused on bringing all customer types – retail, wholesale and commercial – the products and brands which they know and trust, at prices that save them money so that they can live better and trade more profitably.
At Fruitspot we will grow the business by ensuring it becomes a supplier of choice to the retail and hospitality industry in Gauteng and in the Group.
Masswarehouse’s omni-channel strategy is underway and growing. Our mobile solution for commercial customers has been well received. The Makro locker pilot programme is in the market and will be assessed for future extension opportunities.
Makro support the Wildlands Conservation Trust’s Food for Life programme which has assisted more than 250 previously unemployed community members in rural KZN to gain skills in a range of environmental restoration activities, recycling and food gardening.
We are committed to the upliftment and care of those in need in South Africa. We focus our corporate social investment (CSI) activities primarily on education enabling initiatives, school nutrition and infrastructure maintenance projects and recently, youth sports development. Through our Makro CSI partnerships we are committed to making an impact on the lives of the underprivileged within the communities in which we operate. We are committed to delivering on our promise of contributing at least 1% of profit after tax to deserving causes.
Commitment 1: Education
- Hope Worldwide SUCCEED programme
- The Tomorrow Trust
- Kommunity Desk
Commitment 2: School Nutrition
- The Izzi Trust
- African Children’s Feeding Scheme
Commitment 3: Youth Sports Development
- Moving Matters
Our internal training and development initiatives aim to enhance productivity, customer service and operational efficiencies.
- An internal skills audit on lifting machine operators was completed and specialised training given to ensure highest occupational health and safety standards.
- Regular performance meetings on the Consumer Protection Act were held to assess progress.
- More than 85% of our staff members are black and more than 38% are black women.
- A total of 11.84% permanent employees undertook various training courses last year.
Masswarehouse remains an industry leader in improving energy efficiency in the retail environment. Makro was recently named a Global EIA Green Cooling Leader by the Environmental Investigation Agency, an independent UK charity founded to address environmental issues, for their commitment to MFC-free refrigeration.
Energy saving initiatives in our new stores have made them 25-30% more energy efficient which has enabled us to save as much as 36,000 kWh’s of electricity a month in our latest stores. Initiatives include:
- Installing CO2 refrigeration systems that do not make use of ozone depleting refrigerant gases.
- Capturing and reusing condensate from our air-conditioning and refrigeration systems to irrigate our car parks and gardens.
- Using reclaimed heat from our refrigeration and air conditioning plants to help heat the domestic water used in our stores.
- Installing daylight harvesting systems that use natural light, in tandem with LED high bay lights and sophisticated lighting controllers to improve our customers shopping experience while reducing the energy needed to light the store
- Implementing secondary paper, board and plastic recycling initiatives across 100% of our stores, through which we estimate approximately 70% of our operational waste is diverted from landfill
- Supporting a post-consumer e-waste take back initiative in partnership with Samsung, that facilitated the collection, recycling and where necessary safe disposal of 139 tonnes of e-waste in 2014.