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Our business model
The resources Massmart relies on
Financial Capital
The funds available to be utilised by the Group
  • Equity of R6.5 billion
  • R9.1 billion funding facilities
  • Cash generated from operations of R2.9 billion
Manufactured Capital
The physical infrastructure and information technology systems through which we sell our products and services
  • 436 stores covering 1,648,718m2 trading space
  • Our 18 DCs
  • Four ecommerce points of presence and 261 customer collection points
Intellectual Capital
The innovation through which we save our customers money
  • The Private Label brands within our portfolio
  • Sophisticated merchandise and distribution systems and processes
  • Sound compliance and governance processes
Human Capital
The unique set of skills, experiences and perspectives of our people
  • 48,500 FTEs
  • Experienced Executive leadership team
  • Skilled and experienced retail professionals
  • Market-leading corporate university
Social and Relationship Capital
The value added to our business through our relationships with our stakeholders
  • Approximately 4,900 merchandise suppliers across the Group
  • Strong reputation with our customers
  • Informed engagement with regulators
  • Trust from our communities
Natural Capital
The natural resources our business, directly or through our supply chain, is dependent on
  • 204.9 kWh/m2 store-purchased energy intensity
  • Water consumption
  • Waste generated from our stores and DCs
How we do business
Our activities across the value chain
Our business is built on high volume, low cost and operational excellence which enables our price leadership.
Through our supply chain we operate cost-efficient routes to market which include warehousing, transportation and DCs that replenish our stores.
Efficient supply chain which ensures high customer fulfilment
Reduced inventory days that optimise inventory service levels
We maximise marketing and sales through pricing, promotional activity, communication and channel management.
Increased sales volumes
Strengthened wholesale and retail brands
We focus on category management, and rely on strategic relationships with suppliers to maintain our low-cost promise, assortment optimisation, Private Label, merchandising, product placement and space allocation.
Widest range of quality branded products at the best price
New and enticing Private Label range
We operate 436 stores in 13 countries effectively through labour efficiency, store process optimisation and digitisation, and further we extend our reach through our online platforms.
Cost savings passed on to our customers
Improved customer experience service levels
We provide support services to all our Divisions including technology development, human resource management, general management, planning and finance.
Operational excellence that supports a low cost base
Efficiency in the management of capital, space and people
How we create value
Financial Capital
2.9% increase in sales
33.9% decrease in profit before tax
14.1% return on equity
31.7% decrease in headline earnings
Manufactured Capital
13 net stores opened
2.2% increase in trading space
Increased ecommerce collection points
R1.6 billion capital expenditure
Intellectual Capital
SAP ERP implementation in progress in Massdiscounters
136 Private Label brands in our portfolio
>90% voting outcome for all resolutions at AGM
Human Capital
R230.2 million invested in upskilling staff
R7.6 billion paid in salaries
Staff turnover of 20%
Morale impacted by restructure
Social and Relationship Capital
BBBEE Level 4 (up from Level 7 in 2017)
R25.4 million invested in CSI initiatives
Employment equity and gender diversity among top management remains challenging
R254 million procured from Supplier Development Programme suppliers
Natural Capital
Generated 3.6 million kWh of solar energy
Diverted 15,354 tonnes of waste from landfill
0.56 kL/m2 estimated water consumption intensity, up from 0.55 kL/m2