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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.
2017 Strategy
  • Focused customer-centric approach. Improved our product offering, in-store experience, stock availability and value proposition
  • Improve supply chain enabling a reduction in stockholding levels, whilst achieving improved on-shelf stock availability
  • Roll-out Fresh offering across selected Game stores
  • Improve the operating model to reduce operating costs
  • Launch of Game Online trading platform
  • Roll-out of new GK-POS point-of-sale system across all
  • Game and DionWired stores
Delivering on our strategy
Financial capital

On a 52-week basis:

  • Sales decreased by 2.8% and comparable sales were down 4.2% with product deflation of 2.5%
  • Despite this negative sales performance, Game gained market share in most Durables categories
  • Expenses were 0.1% lower than the prior year
  • Reduced inventory value by 16.0%
Manufactured capital
  • Opened one Game store in Ghana
  • New store format launched in Game Pinetown and Game Maputo, focusing on improving the shopping experience
  • Three DionWired stores went live for online fulfilment
  • Improved store efficiency and customer experience through better space planning
  • Fresh category in 72 Game stores in South Africa and 17 in other African countries
Intellectual capital
  • Improved supply chain and store cost efficiencies
  • GK-POS point-of-sale roll-out was completed successfully across all Game and DionWired stores, improving speed at checkout and introducing additional value added products and services for customers
  • Focused on promotional effectiveness of our sales campaigns like ‘Unbeatable Deals’, Black Friday, ‘Truck Loads of Deals ‘
  • Game Online successfully launched on SAP Hybris platform
Human capital
  • Our structure was streamlined to improve innovation, efficiency and effective service delivery
  • Completed strategic talent review
  • Undertook comprehensive job profiling and grading process
Social and relationship capital
  • Game supported Gift of the Givers with donations of goods for the fire victims in the Knysna area
  • Game added 12 mobile kitchens to the amaLunchbox project, reaching a total number of 313 kitchens
Natural capital
  • Reviewed building specifications to ensure lower costs and reduced energy requirements
  • Game Private Label brand, Simple Choice, sold over 430,000 LEDs
2017 Highlights

On a 52 week basis:

  • Profit of R373.5 million, 4.4% below last year
  • Focused customer-centric approach further aligned our product offering, in-store experience, stock availability and value proposition
  • Improvements in the supply chain enabling a reduction in stockholding levels
  • Successful roll-out of SAP point-of-sale across all Game and DionWired stores
  • Operating costs were 0.1% below last year
2.8%
Sales
R19,971.1 million
2016: R20,544.5 million
4.4%
Trading Profit
R373.5 million
2015: R390.7 million
166
Stores
2015: 165 stores
548,544m2
Total trading space
2016: 545,094 m2
Strategic focus for 2018
  • Continue to improve our customer value proposition across all channels
  • Simplify our systems and processes as we invest in best-in-class information technologies and reduce our operating costs
  • Build the best team to deliver value to our customers, shareholders and communities whom we serve
Future outlook

Game remains focused on enabling our customers to access a better life. We will achieve this by offering them a well-priced, easy shopping experience, which meets their lifestyle needs. Game will continue to work on building relevant and cost effective fulfilment and operational capabilities. We will continue to improve our reach to our customers through expansion of Food and our omnichannel capabilities.

2017 Management
Guy Hayward Non-Executive Chairman
Nick Favager Merchandise
Mark Huxtable IT
Mark Turner Marketing
Albert Voogd Chief Executive Officer
Jody Forrester Commercial Development
Erdi Kursunoglu Finance
Alan van der Berg Food
Lyle Brady Supply Chain
Richard Fuller Store Operations Africa
Joe Ralebepa Non-Executive
Johannes van Lierop Non-Executive
Nazim Cassim DionWired
John Hart Formats
Humsha Ramgobin Human Resources
Duval Van Rhyn Store Operations SA