Integrated Annual Report 2021
Integrated Annual Report 2021
Building a world-class omnichannel offering

Our objective

To build omnichannel capabilities through a portfolio of digital assets and a fulfilment infrastructure that enhances customer experiences

Our competitive advantages:

  • Our diverse portfolio of well-known and well-respected brands
  • We can deliver products to our customers faster and cheaper from stores based throughout the geographies in which we operate
  • The strong relationships we have with our suppliers allow us to buy in bulk and negotiate lower prices
  • Access to Walmart’s international experience, expertise, resources and technology
  • The recent investments we’ve made in expanding our omnichannel capabilities that allow us to deliver speedy and convenient online shopping

 

Key achievements during 2021:

  • Reorganised a Group-wide e-commerce function serving all banners
  • Strengthened the Massmart support team at the Bangalore-based Indian Development Centre, making meaningful site enhancements which resulted in improved conversion rates
  • Established a new Pickup and Delivery operations fulfilment structure driving improved service performance
  • Launched mobile apps for Makro and Builders with enhanced user experience
  • Completed acquisitions of OneCart and WumDrop

 

Agile and responsive ways of working

Covid-19
The Covid-19 pandemic and ensuing regulations resulted in lost sales and lower footfall in our stores. Customers began utilising online shopping more, which offered increased safety and convenience. To address this, we began accelerating our omnichannel strategy in 2020.

In 2021, maintaining our focus on enhancing our customer experience, we were able to further accelerate delivery of our omnichannel strategy by taking an innovative, agile and responsive approach to applying our 2020 learnings.

The momentum of customers shifting to online shopping has continued as restrictions were eased.

Civil unrest
The significant damage to our two DCs and 43 stores during the civil unrest in July 2021 temporarily impacted our online fulfilment capabilities in the affected areas. However, swift action ensured that this impact was very short lived as we redirected orders from impacted stores to unaffected stores, re-opened stores that could be re-opened and adjusted delivery times with customers where required.

Read more detail on our year of unique challenges

 

Leveraging Walmart expertise

Both our Senior Vice President and head of e-commerce Technology at Massmart come from Walmart, bringing with them first-hand Walmart knowledge and expertise. We have also moved our technology to Walmart’s global technology centre, based in India, where a dedicated team is responsible for the development of Massmart’s technology. This move allows Massmart to benefit from Walmart’s advanced technology expertise and experience. Through our inclusion in Walmart’s internal forums and existing networks, we can learn from global best practice in the markets where Walmart operates. We are also able to benchmark, leverage, learn from and share best practice with its e-commerce experts.

 

Strategic acquisitions during the year

WumDrop

Massmart acquired 100% of WumDrop and has focused on building the business as a key pillar of our last-mile delivery capability.

WumDrop has expanded its services from delivering a small portion of Makro’s deliveries to delivering almost half of Makro’s online orders (and growing) and also supporting Game and Builders.

WumDrop has the delivery capabilities to rapidly grow the deliveries it undertakes on behalf of thirdp-arty clients, which will allow it to further reduce its cost base, benefitting both the customer and Massmart. Massmart can also strategically leverage WumDrop for opportunities and synergies within the Group. One example is for WumDrop, whose delivery processes are more advanced, to provide delivery services to OneCart.

OneCart

Acquired in October 2021, OneCart, an end-to-end customer fulfilment solution, allows Massmart to fulfil customers’ on demand online orders, which is an increasing trend in South Africa. For categories that are not our areas of strength, such as fresh food, we use OneCart’s marketplace and the stores that are strong in this category to meet customers’ requirements. Through the synergies created between Massmart and OneCart we can be more robust, increase GMV and reach. We are also able to diversify our income streams through other aspects of the OneCart business such as advertising, technology services and other types of fulfilment services.

VodaPay Super App

Our relationship with Vodacom allows us to play a key role within the Super App. We currently provide mobile applications within the VodaPay Super App with Builders and Makro. VodaPay allows customers a single sign-on, by inputting their transactional details only once they get exposure to multiple mobile apps, such as food and grocery, general merchandise deliveries as well as utility payments.

 

Read more detail on our strategy

The future of omnichannel at Massmart

 

Massmart wants to be:

Leading on-demand/last mile platforms,

delivering speed and convenient online shopping to customers who need their orders fulfilled quickly

 

Leading websites and apps in South Africa,

catering to brand loyal customers. To achieve this, we plan to enhance our websites and launch mobile applications to deliver the most trusted omnichannel experience to our brand loyal customers

Leading B2C and B2B marketplace

delivering the broadest assortment available to product-focused, non-brand loyal customers and businesses