Masscash consists of wholesale food and cosmetics business interests as well as retail outlets, all of which target the lower LSM groups. Our wholesale division consists of CBW, Jumbo Cash & Carry, and Shield as well as a number of independent wholesalers operating under their own brands while our retail division is being consolidated under the Cambridge banner.
CBW wholesales food, liquor, groceries and cosmetics in bulk to independent general dealers, government feeding schemes, franchise members, small traders and hawkers in peri-urban and rural areas within southern Africa. Jumbo sells mainly cosmetics, toiletries and hair-care products to individual customers and independent general dealers. Shield is a voluntary buying association that buys products in bulk on behalf of 633 members who own wholesale or retail food businesses in South Africa, Botswana, Namibia and Swaziland.
We also manage the brands of a number of our wholesale customers. At the lowest end of the market, we provide marketing support such as supplying signage and leaflets to spaza shop and shebeen owners through our Banner Group initiative. Masscash owns the rights to these brands and logos.
We offer wholesale customers with more formal operations the ability to trade under national retail brands such as Saverite, Multisave, Powersave and Liquorland. Our marketing team offers wide-ranging support to these supermarkets and bottle stores, assisting owners with marketing initiatives such as designing of leaflets, signage and implementing national television and radio advertising campaigns.
On the retail side, we are consolidating our retail outlets under the Cambridge brand. Fresh service departments, consisting of an on-site bakery, butchery and fresh fruit and vegetable offering form an important component of our Cambridge retail offering.
- Merchandise proposition: comprehensive range of food, ethnic cosmetics, liquor and groceries
- Masscash Brands: Jumbo and Shield, CBW and Cambridge Food
- Number of stores: 75 CBW stores, 27 Cambridge Food stores and 6 Jumbo stores. Shield has 633 members and 686 outlets
- Target market: LSM 2-6
- Total 52 week sales: R22,894.8m
- 2012 trading profit (before tax): R302.2m
- 2012 trading area: 382,101m2
- Average trading area per store: 3,107m2
- CBW geographic presence: South Africa, Botswana, Lesotho, Mozambique, Namibia and Swaziland
- Jumbo geographic presence: South Africa
- Shield geographic presence: South Africa, Botswana, Lesotho, Namibia, Swaziland
- Number of employees: 11,245
Our Value Proposition
All our stores apply the philosophy of supplying the right range of products at competitive prices to low- to middle-income wholesale customers. We keep costs down by employing a no-frills cash and carry warehouse format, coupled with basic distribution centres that supply our private label and important general merchandise ranges. Our private label food brands, Econo and Heritage, offer our customers exceptional value and the assurance of stringent quality and safety controls. Our retail stores are well located, close to high traffic commuter nodes, and offer the best quality at affordable prices.
|Trading profit before interest1||Rm||281.2||374.8||469.1|
|Trading profit before interest as % sales||%||1.2||1.9||2.7|
|Net finance income||Rm||21.0||16.9||26.5|
|Trading profit before taxation1||Rm||302.2||391.7||495.6|
|Trading profit before taxation as % sales||%||1.3||2.0||2.8|
|Operating profit before taxation||Rm||273.9||404.6||498.4|
|Operating profit before taxation as % sales||%||1.2||2.1||2.9|
|Net capital expenditure3||Rm||314.2||244.0||95.6|
|Cash flow from operating activities||Rm||586.9||93.3||154.1|
|Number of stores||123||105||97|
|Average trading area per store||m2||3,107||3,352||3,311|
|Number of employees||11,245||9,276||8,395|
|Sales per store4||R000||160,762||158,289||148,927|
|Sales per m2||R000||52||47||45|
|Sales per employee||R000||2,036||2,116||2,075|
|1.||Trading profit is earnings before asset impairments, BEE IFRS 2 charges, foreign exchange movements, loss on disposal of business, assets classified as held for sale and Walmart costs.|
|2.||The ratios have been calculated using year-end statement of financial position figures.|
|3.||Net capital expenditure is defined as capital expenditure less disposal proceeds.|
|4.||Sales for Shield, Cellshack, Saverite and Kawena are excluded as they do not have stores.|
|5.||Definitions/explanations to the ratios and terms above can be found on here.|
Sustainability Performance (June 2012)
- Value added: R4,013.8m
- Customer satisfaction: 82.0%
- Employees with medical benefits: 39.4%
- Black professionals as a percentage of management professionals: 68.1%
- Our B-BBEE score: 59.5%
- Our purchased electricity emissions intensity: 112.6CO2e(kg)/m2
- Corporate social investment as a percentage of PAT: 3.4%
- Africa operations local management as a percentage of total management: 82.8%