Overview

The trends in national economic data confirm that South Africa has now transitioned from a traditional interest-rate tightening cycle into its first recession in 17 years, led by the global economy. It is therefore not surprising that real retail sales growth declined throughout this financial year, ending at -6,7% for the month of June 2009 and at -2,6% for the year to June 2009, despite the steady relaxation of interest rates from December 2008.

Massmart is a managed portfolio of nine wholesale and retail chains, each focused on high-volume, low-margin, low-cost distribution of mainly branded consumer goods for cash, in 14 countries in sub-Saharan Africa through four divisions comprising 256 stores. The Group is the third largest distributor of consumer goods in Africa, the leading retailer of general merchandise, liquor and home improvement equipment and supplies, and the leading wholesaler of basic foods.