Our commitment is to save our customers money so they can live better. We have historically lived up to this commitment by delivering good value products through accessible Retail and Wholesale formats and online. However, over the past few years, Massmart has seen slowing sales growth, margin pressure and reducing profitability, and we reported our first loss in 2019. This necessitated a review of our business.
Our initial review revealed that while Massmart is a solid underlying business with strong brands and high market share in key categories, there are some strategic and operational gaps in core elements across the value chain impacting our performance and moving our focus away from the customer, these include:
Our task now is to ensure we remain focused on our customers, particularly in the face of challenging economic conditions. We need to be more competitive and offer our customers the value, quality and service that they expect. Our historical performance indicates the potential to deliver significantly better results; to deliver this we require urgent and deliberate intervention.
We have devised a recovery plan to reinvigorate growth within our business, which we presented to analysts on 30 January 2020. Our plan focuses on four key pillars that will help us serve our customers better and improve our business performance.
We are confident that we can positively shift our trajectory to improve our performance and create fuel for further growth of our business.
Growth opportunities beyond our turnaround
Opportunities for us to continue our growth trajectory include: