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Massbuild

Massbuild is the Southern African leader in Home Improvement, DIY and Building Materials. The four Builders store formats, which cater to different markets with their own customers and service offerings, are complemented by the new online platform. Builders’ stores offer exceptional value, a comprehensive range of competitively priced products, with helpful service.
2017 Strategy
  • Develop Builders’ customer value proposition
  • Enhance interconnected retail offering by digitising Builders, to increase sales through interconnected channels such as ecommerce, customer contact centre and customer relationship management
  • Innovate through growing sales of our Private Label brands
  • Focus on growing brand awareness
  • Grow Builders footprint through new channels, new stores and Africa expansion
Delivering on our strategy
Financial capital

On a 52-week basis:

  • Grew total sales for the year by 2.4%, with comparable sales increasing by 1.6%
  • Good expense management saw growth of only 2.6%
  • Significant improvement in the stock profile and stock availability
  • Reduced inventory levels by eight days
Manufactured capital
  • Opened our second store in Zambia
  • Three new Builders Superstores opened in South Africa
  • 57 stores live for online fulfilment by end of 2017
  • Increased centralised warehousing and distribution network by relocating the Western Cape DC to bigger premises
Intellectual capital
  • Record Black Friday sales
  • Growth in known customers through online registrations
  • Our ‘Best Price Cement’ and ‘Price Lock’ promotional campaigns delivered great value for money
  • Maintained price leadership in the geyser category for the sixth year running
Human capital
  • ‘Building Knowledge’ training introduced to all employees dealing with building products
  • ‘Our Reason for Being’ brand ambassador programme was well received, ensuring we deliver on our customer value proposition
Social and relationship capital
  • Constructed two sports fields in Knysna and Mpumalanga and sponsored the Builders soccer tournament
  • Provided equipment and products to the community of Knysna after the devastating fire and to Bushveld Primary School in Durban after the destructive floods
Natural capital
  • New solar plant online at our Builders Warehouse Northriding store
  • Expanded water-harvesting systems to a further Builders Warehouse store
  • 640,000 LEDs sold through our Builders Warehouse Private Label brand Lightworx
2017 Highlights

On a 52-week basis:

  • Sales growth of 2.4%
  • Expense growth of only 2.6%
  • Reduced inventory by eight days
  • Rapidly accelerating online sales growth after April 2017 launch
  • Opened four new stores, adding 1.6% to trading space
2.4%
Sales
R12,993.6 million
2016: R12,687.1 million
2.8%
Trading Profit
R735.5 million
2016: R712.6 million
108
Stores
2016: 104 stores
456,313m2
Total trading space
2016: 449,212 m2
Strategic focus for 2018
  • Expand our ex-SA retail footprint in by opening three new stores in Mozambique and Zambia
  • Focus on optimisation initiatives, including space planning, store specification, customer journey, innovation, assortment optimisation,workforce scheduling and improving energy efficiency
  • Digitise the in-store retail experience in order to be the most remarkable and reliable DIY retailer
  • Smoothing the processes in the trade business to ensure we are truly the store of the community
  • Grow Private Label sales
Future outlook

Massbuild remains committed to growth through extending our store footprint, by opening new stores in South Africa and Southern Africa and by growing sales through our digital platform. We aim to increase our market penetration in rural areas through the Builders Superstore format and filling the market gaps in metros, cities and towns with the appropriate format. Massbuild’s overall objective remains to be Southern Africa’s market leader in Home Improvement, DIY and building materials.

2017 Management
Guy Hayward Non-Executive Chairman
Neville Hatfield Merchandise
Mncane Mthunzi Commercial
Andre Steyn Marketing and Innovation
Llewellyn Walters Chief Executive Officer
Diane Hoffman Supply Chain
Joe Ralebepa Non-Executive
Cristina Tomaz Weeden Human Resources
Karen Ferrini Africa and Superstores
Chris Lourens Operations
Alex Rymaszewski Store Development
Johannes van Lierop Non-Executive
Kuda Hakutangwi Finance
Brett McDougall IT