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Our business model

The resources Massmart relies on:
Our capitals
Financial Capital
The funds available to be utilised by the Group
  • R30.3 billion market capitalisation
  • R5.1 billion utilised funding facilities
  • Cash generated from operations of R4.7 billion
Manufactured Capital
The physical infrastructure through which we sell our products and services
  • 1,612,916m2 trading space
  • A proven high volume, low-cost model
  • 423 stores in 13 countries
Intellectual Capital
The innovations through which we save our customers money
  • Decentralised management
  • Strategic focus and execution
  • Wide Private Label range
  • Sound compliance and governance systems
Human Capital
The unique set of skills, experience and perspectives of our people
  • 48,000 full-time employee equivalents (FTEs)
  • Experienced Executive leadership team
  • Skilled and experienced retail professionals
Social and Relationship Capital
The value added to our business through our relationships with our stakeholders
  • Positive supplier relationships
  • Strong reputation with our customers
  • Informed engagement with regulators
  • Trust from our communities
Natural Capital
The natural resources which our business, directly or through our supply chain, is dependent on
  • Water, energy, fuel and land
How we do business:
Our outputs
Through our SUPPLY CHAIN we operate cost-efficient routes to market which include warehousing, transportation and the distribution centres (DCs) that replenish our stores.
  • Efficient supply chain which ensures high customer fulfilment
  • Reduced inventory days that optimise inventory service levels
We OPERATE 423 STORES IN 13 COUNTRIES effectively through labour efficiency, store process optimisation and digitalisation. Further, we extend our reach through our online platforms.
  • Cost savings passed on to our customers
  • Improved customer experience
We maximise MARKETING AND SALES through pricing, promotional activity, communication and channel management.
  • Increased sales volumes
  • Strengthened wholesale and retail brands
We focus on CATEGORY MANAGEMENT and rely on strategic relationships with suppliers to maintain our low-cost promise, assortment optimisation, Private Label, merchandising, product placement and space allocation.
  • Widest range of quality branded products at the best price
  • New and enticing Private Label range
We provide SUPPORT SERVICES to all our Divisions including technology development, human resource management, general management, planning and finance.
  • Operational excellence that supports a low cost base
  • Efficiency in the management of capital, space and people
How we create value:
Financial Capital
  • 2.7% increase in sales
  • 12.1% increase in profit before tax
  • 24.8% return on average shareholders’ equity
Manufactured Capital
  • 11 stores opened
  • 2.8% increase in trading space
  • R1.8 billion capital expenditure
Intellectual Capital
  • GK-POS roll-out successfully completed across all Game and DionWired stores
  • 58 Private Label brands in our portfolio
  • Enhanced corporate governance structures
Human Capital
  • R112.1 million invested in upskilling staff
  • R7.4 billion paid in salaries, wages and other benefits
  • Staff turnover reduced to 10.4%
Social and Relationship Capital
  • R23.4 million invested in CSI initiatives
  • R200 million procurement from Supplier Development Programme suppliers
  • BBBEE level 7
Natural Capital
  • Generated 1.9 million kWh of solar energy
  • 95% of all stores engaged in separating and recycling waste
  • 21 million litres of water saved through water conservation initiatives