Integrated Annual Report 2021
Integrated Annual Report 2021

Engaging with our stakeholders

We have always recognised the key role relationships play in our ability to deliver on our purpose. Maintaining transparent, trustbased relationships with our stakeholders is an integral part of our value creation process.

Our stakeholders
CUSTOMERS
We drive value by helping people save money and live better by making our cost effective assortment of products widely available
What matters to them
  • Brand custodianship
  • Price competitiveness
  • Product assortment, quality and availability
  • Safe shopping environment with Covid-19 safety precautions
  • Access and ease of shopping
  • Support during the civil unrest
Our response to them
  • Acquired WumDrop and OneCart, launched the VodaPay Super App and enhanced our websites to improve omnichannel capabilities
  • Enhanced online platforms resulting in a 47.0% increase in online sales
  • Re-opened previously closed DCs and shifted stock ensuring product availability to customers following the civil unrest
  • Continued practice and enhancement of our Covid-19 safety protocols
  • Re-opened stores that were not damaged during the civil unrest as soon as it was safe to do so, and working hard to re-open the remaining stores
  • Established a pop-up store for customers to shop at while rebuilding the Makro stores that were destroyed by arson during the civil unrest
Read more detail on our omnichannel and Supply Chain
SUPPLIERS
We drive value by building fair and transparent relationships and building Supply Chain efficiencies
What matters to them
  • Brand custodianship
  • Fair pricing and transparent negotiation
  • Transformation and supplier development
  • Transparent information of product packaging
Our response to them
  • Engaged 136 suppliers for product packaging information. Completed the Private Brand packaging, pulp and paper and timber assessments for products sold in 2020, and determined that 88% of current Private Brand packaging is recyclable
  • Ensure fair wages and safe working conditions through our Responsible sourcing programme
  • Global supply chain challenges, exacerbated by the civil unrest in South Africa, resulted in delayed stock deliveries in electronics and appliances categories
Read more detail on our responsible business
ASSOCIATES
We drive value by striving to create a diverse and inclusive workplace, equip associates with skills and training and remunerate fairly and responsibly
What matters to them
  • Diversity, equity and inclusion
  • Competitive remuneration and benefits
  • Career development and growth opportunities
  • Assistance to those in need during the civil unrest
  • Change management associated with repositioning the business through our Turnaround plan
Our response to them
  • Participated in the Workplace Equality Index for the second year in succession
  • Realigned associates benefits and incentivisation to our new operating model
  • Strengthening our diversity, equity and inclusion commitments within the Group
  • Action plans in place to grow and develop associates
  • Over 99,000 learning initiatives delivered across the Group
  • Spent R79.9 million on training and upskilling our associates
  • 1% decrease in overall associate engagement score to 70%
  • 36.5% associate turnover rate
  • Delivered 8,373 care packages containing basic essentials to all associates based in KZN, and opened stores earlier for affected associates to shop exclusively
  • Learnings from continued associate engagement, including those from our BUA survey, implemented
  • Continued focus on restoring our relationship with SACCAWU
  • Awarded Top Employer in South Africa for 2022
Read more detail on our people and remuneration report
INVESTORS
We drive value by endeavouring to provide our investors with sustainable long-term returns
What matters to them
  • An improved and sustainable return on their investment
  • Our response to the challenging operating environment
Our response to them
  • Delivered R830.6 million in trading profit before interest and taxation, 48.5% lower than 2020
  • Loss for the year increased by 53.5% to R1,577.7 million
  • Turnaround plan continues with pace and focus despite the challenges experienced during this year
  • Continued focus on sustainable cost-saving and Smart Spend initiatives resulted in only a 0.1% increase in costs
Read more detail on our performance, strategy and our year of unique challenges
GOVERNMENT
We drive value by abiding by laws, policies and regulations set out by Government and contributing towards the betterment in the countries we operate in
What matters to them
  • Assistance with providing Covid-19 vaccines through outreach sites at selected stores
  • Contribution to economic development
  • B-BBEE
  • Change associated with repositioning the business through our Turnaround plan
Our response to them
  • Through our partnership with the National Department of Health, established and rolled out mobile vaccinations sites which administered over 36,000 vaccines to Massmart customers
  • Paid R425.3 million in corporate income tax across the Group
  • Maintained our Level 4 contributor B-BBEE status with the highest score achieved by a JSE-listed retailer
Read more detail on our responsible business
SOCIETY
We drive value by advocating for and applying responsible business practices; investing in CSI and environmental programmes; and committing to ethical business and good governance
What matters to them
  • The sustainability of our shopping bags
  • Sustainable seafood sourcing
  • Wildlife conservation
  • Good corporate citizenship
  • Assisting those in need during the civil unrest
Our response to them
  • Following industry engagement transitioned to 100% recycled and recyclable shopping bags across all stores
  • Engaged with numerous stakeholders (including, Capricorn Marine Environmental, World Wide Fund for Nature and the MSC Foundation) and reinforced our commitment to sustainable seafood sourcing and the need to continue to implement scienceled fishery improvement plans
  • Initiated engagement with key commercial fisheries to identify potential improvement opportunity areas Massmart can assist with
  • Reduce our impact on the environment through the use of solar power, water saving and waste to landfill reduction initiatives
  • Together with Walmart and the Walmart Foundation, contributed R13 million worth of food to mitigate food insecurity in vulnerable communities
Read more detail on our responsible business