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Massbuild

Massbuild is the Southern African leader in Home Improvement, DIY and Building Materials. The four Builders’ store formats – Builders Warehouse, Builders Express, Trade Depot and Superstore – cater to different markets with their own personalised feel and service offering and are complimented by our new online platform. Builders’ stores offer exceptional value, a comprehensive range of competitively priced products, with helpful service.
2018 strategy
Expand our ex-SA retail footprint by opening new stores in Mozambique and Zambia
Focus on optimisation initiatives, including space planning, store specification, customer journey, innovation, assortment optimisation, workforce scheduling and improving energy efficiency
Digitise the in-store retail experience in order to be the most remarkable and reliable DIY retailer
Streamline the processes in the building trade business to ensure we are truly the store of the community
Grow our Private Label sales participation
The progress we made
  • Opened nine new stores, including one in Maputo, Mozambique and another in Makeni, Zambia, and closed three in South Africa as part of a longer-term store rationalisation programme
  • Contained operating costs through strict store operating specifications, improved workforce scheduling and a focused Goods Not for Resale (GNFR) team
  • We constantly invest in our people by providing them with learning and knowledge sharing opportunities. In 2018 we made great strides in providing most of our learning and development initiatives through a digital platform. This allowed our staff to upskill themselves at a time and place convenient to them instead of being confined to a classroom
  • Grew our Private Label sales participation to 19.7% and expanded the number of products in the Private Label range
  • Digitised the in-store retail experience in new and revamped stores
  • Improved our online offering by increasing the number of products available online, offering ‘how to’ videos and DIY services
  • Expanded our online delivery options to include priority express which enables same-day deliveries
  • The product range on the Builders Warehouse online platform has been expanded to 35,000 items and sales growth remains very high with strong customer support
  • Click-and-collect capability is available in all South African metropolitan stores and will soon be launched in our stores in Zambia and Botswana
The challenges we faced
  • A slowing South African economy and a low builders’ confidence index
  • Local authority ineffectiveness in rezoning and plan approvals for new stores
  • Policy uncertainty around land expropriation affecting new building plans
  • Regulatory changes in some African countries impacting stock availability
  • An increasingly competitive environment
Our strategic focus for 2019
  • Opening of our first store in Nairobi, Kenya
  • Continuing to grow the Private Label sales participation
  • Widening our service offering, including VAS and project design, estimation and installations
  • Continue to digitise the in-store retail experience in order to be the most remarkable and reliable DIY retailer
  • Improving omnichannel fulfilment to be more reliable with on-time collections and deliveries
  • Aggressively growing ecommerce by expanding the range to cover everything available in-store and more
Future outlook
Massbuild will continue to build a leading interconnected retail business. We remain committed to growth through extending our store footprint, opening new stores in South Africa and Southern Africa, and by growing sales through our online platform. We aim to increase our South African market penetration in rural areas through the Builders Superstore format and by filling the market gaps in cities and towns with the appropriate Builders format. Massbuild’s overall objective remains to be Southern Africa’s market leader in Home Improvement, DIY and building products and services.

South African consumer and contractor confidence remains low and so we anticipate a difficult sales environment in 2019. Outside South Africa our stores perform well in local currencies but our Rand performance depends upon the currency exchange rate at different times throughout the year.