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Massdiscounters
Massdiscounters operates through two retail formats: Game and DionWired. Game is a discount multi-category format retailer of General Merchandise, Fresh Food, Groceries and Liquor, operating throughout South Africa and in 18 cities in sub-Saharan Africa. DionWired sells the complete technological solution in Multimedia and Hi-tech.
2016 Highlights
  • Healthy profit growth of 54.8% amidst tough economic trading conditions
  • Food continues to grow strongly
  • Focused customer-centric approach further aligned product offering, in-store experience, stock availability and value proposition
  • Improvements in the supply chain enabling a reduction in stockholding levels, whilst achieving improved on-shelf stock availability
  • Improvements in the operating model enabling reduced operating costs
  • Successful pilot of SAP point-of-sale system
2016 Strategy
  • Deliver real value to our core customer through unbeatable low prices
  • Offer a good retail experience which guarantees quality
  • Provide focused ranges that meet all our customers’ household needs
  • Ensure an effective supply chain, enabled by efficient information systems and processes
Delivering on our strategy
What we did well:
  • Responded to our customers’ needs by offering the correct assortment of price points
  • Re-energised our Food, Cellular and Homeware offering
  • Collaborated with our suppliers to improve supply chain efficiencies
  • Mobilised the business around delivering on our strategic plan and SAP implementation
The improvements we made:
  • Significant growth in both sales and margin of our Food & Liquor offerings
  • Improved in-stock coupled with reduced stock level
  • Improved supply chain and store cost efficiencies
The challenges we’re facing:
  • Low consumer confidence and tough South African economic environment pressurising our core middle-class customer
  • Slowing African economies
Strategic focus for 2017
  • Continue to improve our customers’ value proposition
  • Simplify our systems and processes as we invest in SAP point-of-sale and ERP systems
  • Reduce operating costs through focus on supply chain, non-trading space and labour scheduling
  • Build the best team to deliver value to our customers, shareholders and communities whom we serve
Future outlook

Game will continue to roll-out Fresh Food. We will refurbish some current stores and focus on consolidating our footprint to optimise profitability. We will carry on consolidating the Hi-tech and Multimedia categories. We will start our Omnichannel journey. At DionWired we will focus on reinvigorating our customer experience through focusing on our core purpose to simplify life by obsessively sharing the joy of technology.

5.3%
Sales
R20,544.5 million
2015: R19,514.1 million
54.8%
Trading Profit
2015: R364.3 million
165
Stores
2015: 161 stores
545,094
Total trading space
2015: 533,078 m²
Management team
Guy Hayward (Non-Executive Chairman)
Albert Voogd (Chief Executive Officer)
Lyle Brady (Supply Chain)
Nazim Cassim (DionWired)
Nick Favager (Merchandise)
Jody Forrester (Commercial Development)
Richard Fuller (Store Operations Africa)
Norman Gray (Non-Executive)
John Hart (Formats)
Mark Huxtable (IT)
Erdi Kursunoglu (Finance)
Joe Ralebepa (Non-Executive)
Humsha Ramgobin (Human Resources)
Mark Turner (Marketing)
Johannes van Lierop (Non-Executive)
Duval Van Rhyn (Store Operations SA)