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Divisional Reviews

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 online platform. Builders’ stores offer exceptional value, a comprehensive range of competitively priced products, supported by helpful service.
Our progress during the year
  • Grew our Private Label sales participation to 20.8% and added 1,000 more products to our Private Label range
  • Expanded and grew our service offerings. We introduced RCS credit solutions in Botswana and rolled out VAS in Botswana and Zambia. We expanded our offerings in travel, Lotto and money transfers in South Africa
  • Introduced the Love Your Home card and a gift registry service as part of our digitisation drive in order to be the most remarkable and reliable DIY Retailer
  • Launched our first Builders store of the future in Boksburg showcasing its digital capabilities
  • Commenced development and implementation of a new omnichannel point of sale solution
  • Continued our journey to improve omnichannel fulfilment, reliability with on-time collections and deliveries
  • Extended our online range to exceed the range available in store
  • Grew online traffic by 36% to 31.8 million visits during this year
  • Launched click-and-collect in the rest of Africa, with three collection points in Zambia and two in Botswana.
The challenges we faced
  • Slowing building sector led by lower government spending and lower consumer confidence
  • Reduced sales from trade customers who experienced credit pressure from insurers
  • Due to delays experienced, the opening of the first store in Kenya was moved to 2020.
Our strategic focus going forward
  • Ensure the successful integration to the Massmart Retail business unit
  • Continue to grow our Private Label sales participation, service offerings and omnichannel fulfilment
  • Continue to drive non-cyclical new revenue in the commercial space
  • Implement our omnichannel point of sale solution
  • Continue to invest in ecommerce by expanding the product range available
  • Cost containment through continued focus in key areas
  • Opening of our first store in Kenya.
Future outlook
Massbuild will invest in building a leading interconnected Retail business. We remain committed to growth through optimising our current footprint, extending our store footprint where possible, and growing sales online. Our objective is to increase our market penetration by focusing on local relevance to ensure we establish stores that benefit communities. We aim to be the market leader in Home Improvement, DIY and building products and services, with the best long-term prospects on the continent.
2019 strategy
Open our first store in Nairobi, Kenya
Continue to grow our Private Label sales contribution
Expand our service offering in Value-Added Services (VAS), design, estimation and installations
Continue to digitise the in-store retail experience as part of our effort to be the most remarkable and reliable DIY Retailer
Improve omnichannel fulfilment to be reliable with on-time collections and deliveries
Aggressively grow ecommerce and extend the range to cover everything available in store and more