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Massdiscounters

 

dion-wired game

Massdiscounters Brands

Massdiscounters operates two retail formats: Game and DionWired.

Game is a discount retailer of General Merchandise and non-perishable and dry groceries for home, leisure and business use, operating throughout South Africa and in 14 cities in sub-Saharan Africa. Traditionally Game has been a discounter of General Merchandise, but our format renewal, with the introduction of perishable food has intentionally pushed the brand towards a multi-category format. We now have 107 Game stores in South Africa and 14 in Africa, bringing our total footprint to 121, with 48 stores now also providing fresh food..

DionWired is a South African electronics and appliances speciality store catering for the middle- to upper-end income consumer and currently has 22 stores.

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.

Primary Business Segments for the year ended 29 December 2013

Total
Rm
Corporate
Rm
Massdiscounters
Rm
Masswarehouse
Rm
Massbuild
Rm
Masscash
Rm
Sales 72 263.4 - 16 740.6 19 675.1 9 583.6 26 264.1
Operating profit before interest and taxation 2 152.5 (37.9) 449.0 988.1 505.3 248.0
Trading profit before interest and taxation 2 145.4 - 366.6 990.2 507.6 281.0
Net finance (costs)/income (255.1) (349.6) 34.0 38.5 29.2 (7.2)
Operating profit before taxation 1 897.4 (387.5) 483.0 1 026.6 534.5 240.8
Trading profit before taxation 2 239.9 - 400.6 1 028.7 536.8 273.8
Inventory 10 115.5 12.6 3 647.2 2 618.2 1 597.0 2 240.4
Total assets 26 147.9 (2 614.7) 7718.3 7 166.8 5 212.0 8 665.5
Total liabilities 20 778.3 (6 027.7) 7522.2 6 587.8 4 857.4 7 838.6
Net capital expenditure 2 061.4 759.0 489.7 344.8 275.1 192.8
Depreciation and amortisation 731.1 33.9 256.4 145.4 121.2 174.2
Impairment losses 41.6 - - 2.1 - 39.5
Non-cash items other than depreciation and impairment 138.0 458.0 23.3 (352.2) 13.6 (4.7)
Cash flow from operating activities 1 914.5 399.4 990.1 273.9 356.9 (105.8)
Cash flow from investing activities (2 306.3) (1 424.0) (490.6) (385.2) (275.2) 268.7
Cash flow from financing activities 293.0 819.4 (621.6) 209.3 1.4 (115.5)
Inventory days 63.7 - 109.3 59.2 92.3 35.2
Number of stores 376 - 143 19 92 122
Trading area (m2) 1 481 308 - 475 331 195 794 410 546 399 637
Trading area (m2) increase on Dec 2012 4.8% - 7.7% 9.3% 3.7% 0.6%
Trading area (m2) increase on Dec 2012
(excluding re-measurements)
4.8% - 6.5% 9.3% 5.8% -0.2%
Average trading area per store (m2) 3 940 - 3324 10 305 4 462 3 276
Distribution centre space (m2) 323 813 - 178 488 51 300 61 733 32 292
Distribution centre space (m2) increase on Dec 2012 11.4% - - - 108.4% 3.2%
Number of full-time equivalents 37 554 403 12 870 4 929 8 882 10 470
Number of full-time equivalents increase on Dec 2012 4.2% 28.3% -6.5% 27.9% 9.9% 4.3%

 

  • The corporate column includes certain consolidation entries.
  • All intercompany transactions have been eliminated in the above results.
  • Trading profit before taxation is earnings before corporate net interest, asset impairments, BEE transaction IFRS 2 charges, foreign exchange movements, loss on disposal of business, and assets classified as held for sale.
  • Net capital expenditure is defined as capital expenditure less disposal proceeds.

 

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 and a quality guarantee for customers . We ensure that customers are assured of the best value at every logical price point. The Game trading model is promotionally-driven, with five million copies of our weekly promotional leaflets distributed in South Africa. By working closely with our suppliers and benchmarking ourselves against competitors, we are able to offer our customers well-priced products representing great value.

Currently 48 Game stores provide a perishable food offering adding further everyday value to our customers. Over the next few years, we intend to roll out perishable food to most Game stores.

Game Liquor was included with the format renewal to complete our offering and increase foot traffic. We now have 30 Game Liquor stores, which are performing in line with expectations.

DionWired Value Proposition

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. The Tech experts manning our in-store Tech Smart service centres are on hand to offer the best advice and onsite repairs and services.

Although we guarantee our merchandise is everyday competitively priced, DionWired’s value proposition is not founded on price alone. Our main proposition is to offer the widest range of some of the world’s leading and discerning brands such as Apple, Smeg, Miele, Marantz, Bose and Onkyo to the South African higher-income consumer.

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