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Our stakeholder relationships
Massmart is committed to saving customers money so they can live better. Our ability to fulfil this commitment is dependent on the transparent trust-based relationships we build with our customers, suppliers, employees, regulators, shareholders and the communities in which we operate.

The people who choose to shop online and in our 436 stores in 13 countries across sub-Saharan Africa


Our strategic priorities

We seek opinions from our customers through:
  • Intercept and advocacy surveys as needed throughout the year
What matters to them:
  • Price competitiveness
  • Product availability, quality and safety
We create value by:
  • Maintaining a low cost-to-sales ratio, which enables us to compete aggressively on price
  • Improving customers in-store experience through investing in technology
  • Providing responsibly sourced products
In 2018, we:
  • Limited expense growth to 5.0%
  • Made 136 brands available in our Private Label portfolio
  • Grew online by 56%
  • Completed GK-POS roll-out across all Game and DionWired stores

The 4,900 suppliers and service providers that enable us to carry out our business activities


Message from our CEO

Addressing social and environmental challenges

We seek opinions from our customers through:
  • Intercept and advocacy surveys as needed throughout the year
What matters to them:
  • Brand custodianship
  • Fair pricing and transparent negotiation
  • Transformation and supplier development
We create value by:
  • Supply chain efficiencies to ensure products reach desired markets cost effectively
  • Building fair and mutually beneficial business relationships
  • Supporting small local manufacturers through our Supplier Development Programme (SDP)
In 2018, we:
  • Procured more than R254 million from our SDP suppliers
  • Made progress in providing reliable and cost effective availability of products by leveraging Group scale
  • Increased the number of suppliers in Massmart’s distribution network

The 48,500 employees who work across our business


Empowering our people

Remuneration report

Engagement with our employees occurs through:
  • Regular interactions, performance review and career planning discussions, CEO roadshows and the annual employee engagement survey
What matters to them:
  • Competitive remuneration and benefits
  • Career development and growth opportunities
  • Equal opportunity
We create value by:
  • Delivering fair and responsible remuneration
  • Offering an authentic retail experience and developing the skills necessary to be successful in retail
  • Promoting a diverse and inclusive environment through employment equity and gender equality
In 2018, we:
  • Undertook a review of fairness of remuneration across the Group
  • Invested R230.2 million in the development of our people
  • Reviewed the Massmart Corporate University offering
Government and civil society

The government departments, regulatory bodies, local authorities and civil society groups in the communities in which we operate


Corporate accountability

Reflections from the Chairman

We engage government and civil society representatives through:
  • Public policy discussions and engagement with consumer interest groups
What matters to them:
  • Broad-Based Black Economic Empowerment (BBBEE)
  • Contribution to economic development
  • Responsible sourcing of priority products
We create value by:
  • Contributing to fiscal revenue through the payment of taxes
  • Investing in education-focused socio-economic development initiatives
  • Improving our resource efficiency (energy, water, waste)
In 2018, we:
  • Notably improved Massmart’s BBBEE status from Level 7 to Level 4
  • Spent R25.8 million on supplier development through our Supplier Development Programme
  • Were rated in the top five companies globally for ESG within the FTSE Broadline Retail sub-sector

The 4,234 institutional and private investors who have shares in our business, the fund managers and analysts who support our shareholders


Message from our CEO

Chief Financial Officer’s review

Transparency and accountability

We engage shareholders through:
  • Investor presentations, meetings and roadshows, and the Annual General Meeting
What matters to them:
  • An improved and sustainable return on their investment
  • Our strategic response to a changing operating environment
  • Good corporate citizenship
We create value by:
  • Maintaining a consistent performance and by paying dividends
  • Delivering a consistent return on equity
  • Ensuring responsible corporate governance practices
In 2018, we:
  • Delivered structurally lower operating costs with comparable expenses only increasing by 2.3%
  • Focused on growing online by 56% and VAS by 61%
  • Ensured ethical and effective leadership by the Board