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Engaging with our stakeholders
We have always recognised the key role relationships play in our ability to deliver on our purpose. Maintaining transparent, trust-based relationships with our stakeholders is an integral part of our value creation process. Depending on the quality of our relationships they can either contribute, maintain, or erode our stock of relationship capital and they are key to Massmart retaining its licence to operate.

Engaging during the Covid-19 pandemic

The Covid-19 pandemic reminded us how crucial engaging with our stakeholders is, particularly during times when our stakeholders are at risk.

Key communications

  • Communication with our associates and our customers regarding the steps Massmart had taken to keep them safe and the steps they could take to keep safe
  • Engaging with associates employed by Builders when the stores were closed to comply with lockdown level 5 regulations and associates who had no work when our stores were limited to selling essential goods only, to assure them that they would be paid and that their jobs were safe
  • The regular engagement we always maintain with our suppliers helped to ensure we were able to keep our stores stocked when there were shortages of certain items and we could negotiate payment terms to protect our cash flow during lockdown level 5
  • Our shareholders needed to know what steps we were taking to protect our business from the risks that arose during the Covid-19 pandemic
  • Engaging with the NGOs we work with to establish how best we can assist them with meeting new and increasing demands on their resources during the Covid-19 pandemic

How we define our relationships

 

Our stakeholders
Customers
What matters
  • Price competitiveness
  • Product availability
  • Quality
  • Safe shopping environment
  • Covid-19 safety precautions
Our response to them
  • Communicated what we were doing to keep customers safe in our stores and also offered online shopping options
  • Massmart Wholesale Customer net promoter scores improved by 10 points in stores and 20 points online
  • Game rolled out Happy to Help customer service programme and launched three Centre of Excellence stores, driving improved customer experience
  • Implementation issues with the SAP S/4HANA ERP system contributed to sub-optimal in-stock levels
Suppliers
What matters
  • Brand custodianship
  • Fair pricing and transparent negotiation
  • Transformation and supplier development
  • Payment terms during Covid-19 lockdown
Our response to them
  • Integrating the supply chain to promote cost-effective on-shelf availability at a lower cost to serve
  • We drive product traceability within our supply chains
  • We ensure fair wages and safe working conditions through our Responsible sourcing programme
  • Builders as well as the industry in general experienced cement shortages
  • Engaged with suppliers during Covid-19 and negotiated payment terms to protect cash flow during Covid-19 level lockdown, but also assisted small business suppliers with cash flow challenges
Associates
What matters
  • Competitive remuneration and benefits
  • Career development and growth opportunities
  • Equal opportunities
  • Covid-19 safety precautions
Our response to them
  • Introduced various protocols to ensure a safe working environment
  • Ongoing remuneration reviews at all levels conducted by the Remuneration Committee
  • R170.1 million spent on training and upskilling our associates
  • The Massmart digital learning platform was successfully launched in November 2020
  • Overall associate engagement score increased from 69% to 71%
Government
What matters
  • Broad-Based Black Economic Empowerment
  • Contribution to economic development
  • Assistance with protecting the healthcare system from collapse during the Covid-19 pandemic
Our response to them
  • Maintained Level 4 contributor BBBEE status with highest score achieved by a JSE-listed retailer
  • R105.9 million of corporate income tax paid across the Group’s various operations
  • Procured over R1 billion from suppliers on our Supplier Development Programme since inception
  • Supported efforts of NGOs to protect the healthcare system
Regulators
What matters
  • Responsible sourcing of priority products
  • Focus on compliance
Our response to them
  • Over 500 private brand and direct import suppliers participating in our Responsible Sourcing Compliance programme, with over 800 facilities required to undergo regular social compliance audits
  • Retained a 100% Global Food Safety Initiative Certification against the FSSC 22000 Food Safety Management System for our manufacturing sites
Civil Society
What matters
  • Good corporate citizenship
  • Assisting those in need as a result of the impact of Covid-19 pandemic
Our response to them
  • Approximately 2 million meals provided to people in need and donation of approximately 500 tonnes of food countrywide
  • Municipal water consumption reduced by approximately 25 million litres
  • 9 solar plants installed producing 6.2 million kWh/p.a. in renewable energy
Investment Community
What matters
  • An improved and sustainable return on their investment
  • Massmart’s ability to protect its business from Covid-19 risks
Our response to them
  • Delivered R1,172.7 million in trading profit before interest and taxation representing a 5.5% increase from the prior year
  • Pillars of Turnaround plan starting to yield tangible results
  • Loss for the period increased by 35.3% to R1.8 billion
  • Future strategic positioning announced which will enable the Group to become a stronger business that leverages core strengths