Massmart bought Dion in 1993 and Game in 1998, merging them a year later. At that time, both operated similar, competing formats and the decision was taken to close or convert all Dion stores to Game where this was facilitated by impending store lease terminations. A core of ten Dion stores was retained in Gauteng until those leases came up for renewal, and in 2008 all these stores were closed or converted to Game.
Massdiscounters operates two retail formats: Game and DionWired. Game is a discount retailer of general merchandise FMCG, and non-perishable groceries for home, leisure and business use, operating throughout South Africa and in 12 major cities in sub-Saharan Africa. DionWired is a South African electronics and appliances speciality store catering for the middle- to upper-end income consumer. Game currently has 114 stores and the total number of DionWired stores is 19.
- Merchandise proposition: wide range of general merchandise, electrical appliances and non-perishable groceries
- Massdiscounters Brands: Game and DionWired
- Number of stores: DionWired increased to 19 stores, Game has 114 stores
- Fifteen Game stores now also provide a food offering under the Foodco sub-brand and this will be rolled out at the rate of about 15 stores annually.
- Target Market: Game: General merchandise and FMCG (LSM 5 -10) and General Merchandise: (LSM 8 – 10)
- Divisional comparable sales growth: 3.7% with estimated inflation of 7.3%
- Total 52 week sales: R14,805.7m
- 2012 trading profit (before tax): R813m
- Comparable sales growth: 4.4%
- 2012 trading area (m2): 415,186m2
- Average trading area per store: 3,321m2
- Game geographic presence: South Africa, Botswana, Ghana, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda and Zambia
- DionWired geographic presence: South Africa
- Number of employees: 9,972
Game Value Proposition
At Game our positioning offers customers the widest range of branded products, at the best price, for a given set of product specifications. Customers are presented with a wide range to choose from and are assured of the best value product for that price. The Game business model is promotionally driven, with more than four million of our weekly promotional leaflets distributed each week. During this financial year, we continued to take large positions on selected products and through working closely with our suppliers, were able to offer our customers well-priced products representing great value.
In the minds of South Africa’s discerning and tech-savvy customers, DionWired has positioned itself as South Africa’s premiere consumer electronics and appliance concept store, inspiring customers with their comprehensive range from audio, TV, DVD and satellite products to gaming and movies, computing, appliances, photography and GPS. This is complemented by a full bouquet of solution driven services including in-store and on-site technical support to extended warranties and connecting solutions. DionWired offers complete technological solutions, demonstrating in-store the interconnectivity of the latest innovations and industry leading branded merchandise with extended product offerings that include specialist brands and ranges.
Although we guarantee our merchandise is everyday competitively priced, DionWired’s value proposition is not based on being a discounter. Our main proposition is to offer South Africans the widest range of some of the world's biggest upmarket, specialist brands, such as Apple, Smeg, Nespresso, Marantz, Jamo, Onkyo and Bose to the middle- to higher-end consumer. The intention is to inspire customers to “experience what’s possible” as our team of professional and informed enthusiasts help you to fulfill your needs and desires with our innovative, exciting, and best in class ranges.
|Trading proﬁt before interest1||Rm||749.8||744.0||612.8|
|Trading proﬁt before interest as % sales||%||5.1||5.6||5.0|
|Net ﬁnance income||Rm||63.2||38.0||47.6|
|Trading proﬁt before taxation1||Rm||813.0||782.0||660.4|
|Trading proﬁt before taxation as % sales||%||5.5||5.9||5.4|
|Operating proﬁt before taxation||Rm||719.4||749.7||586.9|
|Operating proﬁt before taxation as % sales||%||4.9||5.6||4.8|
|Net capital expenditure3||Rm||505.9||336.3||285.1|
|Cash ﬂow from operating activities||Rm||(136.1)||81.6||290.6|
|Number of stores||125||113||102|
|Average trading area per store||m2||3,321||3,430||3,485|
|Number of employees||9,972||8,445||8,876|
|Sales per store||R000||118,446||117,987||119,264|
|Sales per m2||R000||36||34||34|
|Sales per employee||R000||1,485||1,579||1,371|
|1.||Trading proﬁt is earnings before asset impairments, BEE IFRS 2 charges, foreign exchange movements 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.||Deﬁnitions/explanations to the ratios and terms above can be found here.|
Sustainability Performance (June 2012)
- Value added: R4,128.6m
- Customer satisfaction: 88.0%
- Employees with medical benefits: 37.9%
- Black professionals as a percentage of management professionals: 88.2%
- Our B-BBEE score: 77.4%
- Our purchased electricity emissions intensity: 264.1 CO2e(kg)/m2
- Corporate social investment as a percentage of PAT: 4.5%
- Africa operations local management as a percentage of total management: 89.3%