Integrated Annual Report 2021
Integrated Annual Report 2021

Our business model

Our business model relies on high-sales density formats, procurement scale and cost-efficient routes to market. It helps us drive sustainable economic value for our stakeholders and deliver on our purpose to our customers.



  • R2,951.5 million in equity
  • R11.2 billion in funding facilities
  • R2,288.8 million in free cash inflow


  • 360 Retail and Wholesale stores
  • 1,399,133m2 total trading space
  • 14 DCs and four large item depots (LIDs)
  • 413 Pickup points
  • 88 Private Brand products


  • Experienced leadership driving our values throughout the business delivering on our purpose
  • Our skilled associates who are aligned with our values and strategy
  • Investment in skills training and leadership development
  • Robust health and safety programmes in place to keep our associates and customers safe


  • Values-driven Company underpinned by strong compliance and governance culture
  • Customer data and feedback to inform business decisions
  • Ability to innovate and develop an effective business strategy
  • Robust governance structures, which support ethical and effective leadership
  • Effective risk management and risk governance
  • Systems, processes and software that make up our organisational capital
  • Three e-commerce sites
  • Integrated Supply Chain solution


  • Customer loyalty based on our ability to deliver on our purpose of saving our customers money so they can live better
  • Engagement with regulators
  • Our commitment to responsible business and responsible sourcing
  • Strong relationships with our key suppliers and service providers
  • Good community relationships
  • CSI contributing to increased food security, early childhood development (ECD) and reduced inequalities
  • Level 4 contributor B-BBEE status
  • Trusted brands and reputation
  • Our contribution to the UN SDGs



  • Skills and resources established to reduce our impact, and that of our customers, on the environment through increased recycling, reduction of waste to landfill, water use efficiency, climate change mitigation and adaptation, sustainable sourcing and product screening


We support our business units with human resource management, technology developments, Goods Not For Resale (GNFR), supply chain optimisation, e-commerce, real estate, financial management and control and through outsourced functions: financial transactional support and SAP application development


We leverage our exceptional partnerships and bargaining power with our suppliers through Group collaboration, to responsibly source an assortment of low-cost products, including Private Brand products.


We have various communication channels, shopping options, competitive pricing, promotional activity and an assortment of quality products.


Our integrated Supply Chain optimises storage, planning, logistics and Group-wide transport to deliver reliable, cost effective on-shelf availability.


Reaching a wider range of customers by providing a variety of shopping methods, adapting to customer preferences and shopping environments, delivering cost savings and an improved customer experience.


Whose commitment and skills ensure we have the resilient teams and empowered leaders that are core to achieving our strategy.


Ethically sourcing safe products for our customers. Providing information on these products to keep customers safe and helping to reduce their impact on climate change.



  • Sales up 0.1%
  • Comparable sales up 3.0%
  • R2,545.2 million in equity
  • R10.1 billion in funding facilities
  • R2,030.8 million in free cash outflow
  • 0.1% increase in Group expenses
  • Delivered R830.6 million in trading profit before interest and taxation (48.5% decline from 2020)


  • 43 stores significantly impacted during the civil unrest in South Africa
  • 34 of these stores re-opened as at year end
  • 352 stores in 2021 (down from 360 in 2020)
  • Net decrease of 8 stores: 1 store opened, 7 closed, 2 sold
  • 1.9% decrease in trading space
  • 86 Private Brand products
  • 385 Pickup points
  • Increased online sales 47%
  • Increased online sales participation 2.2% (2020: 1.8%)
  • Increased Gross Merchandise Value (GMV) 56% and online orders 113%
  • Distribution capacity in 13 nodes
  • Relayed 114 South African Game stores
  • Finalising divestment of discontinued operations: Cambridge, Rhino and Massfresh
  • Commenced divestment of Game East and West African stores, and 15 South African Game stores


  • R7.3 billion employment costs, increased by 0.6%
  • Delivered 8,373 care packages containing basic household items to associates in KZN, when it was challenging to secure essential household items
  • 78.6% of permanent associates are historically disadvantaged
  • 38.4% of permanent associates are female (Target: 50% female associates by 2023)
  • 36.5% associate turnover rate
  • 1.4% associates living with disabilities (Target: 1.5% by 2022)
  • Moved to a hybrid work-from-home/office model at head offices
  • Implementing mandatory Covid-19 vaccination protocols at head offices, continued store based vaccine education and enablement programmes
  • Special paid leave for associates to receive Covid-19 vaccination
  • Mobile Covid-19 vaccination sites at stores in high density urban areas
  • Incurred R77.7 million additional Covid-19-related costs to ensure a safe shopping and workplace environment for customers and associates
  • Awarded Top Employer in South Africa for 2022


  • Established a Group-wide e-commerce function serving all banners
  • Consolidating our Supply Chain network
  • Enhanced ability to leverage Walmart skills and expertise
  • Implementing our Turnaround plan with pace and focus
  • Implemented a targeted behavioural energy management programme in Makro, Game and Builders to reduce electricity consumption
  • Established the Food Share programme through partnerships with FoodForward SA


  • Massmart and Walmart contributed R13 million to hunger relief organisations
  • Over 200 tonnes of food donated to local communities to help alleviate heightened food insecurity following the civil unrest
  • Assisted pensioners in rural areas to successfully register for and receive their vaccines at our stores when they collected their SASSA grant payments
  • Through partnership with the National Department of Health, assisted with administering approximately 36,372 vaccines to Massmart customers
  • Through partnership with HOPE Worldwide, supported a total of 272 ECD centres catering to 12,586 children to enable better education outcomes for vulnerable children between the ages of 0-6 years
  • Maintained Level 4 contributor B-BBEE status and highest score achieved by a JSE-listed retailer: customers can claim 100% of their spend with Massmart going towards B-BBEE
  • Identified 14 immediate product localisation opportunities through our SDP



  • Reduced water consumption from potable sources by 121 million litres over the last five years
  • Commissioned two new solar plants during the year, increasing the Group’s electricity production by an estimated 800,000 kWh per annum
  • Diverted 54% (approximately 14,600 tonnes) of our waste from landfill in 2021
  • Collected over 40,000 kilograms of e-waste during the year through our Makro Electronic Waste Recycling Programme
  • 20.8% reduction in estimated water consumption intensity
  • 20.2% reduction in our South African store energy intensity year-on-year
  • 14 canned, fresh and frozen seafood samples submitted for DNA analysis to ensure responsible sourcing

Our capital outputs include the assortment of good quality products and services, including value-added services (VAS), to our customers at affordable prices. These products and services are available both online, through our multiple e-commerce platforms, and in-store, at our 352 stores in 13 countries. Waste and other by-products are produced by carrying out our business activities, this includes emissions and waste.

Read more detail on responsible business

Our revenues

    2021 2020
  Food 36% 39%
  Liquor 15% 13%
  Durables 49% 48%



Our revenue differentiators
  • Maintaining a good relationship with our suppliers to ensure a competitive product assortment
  • Providing good quality products at everyday low prices (EDLP) to our customers through our Private Brand offering
  • Improving customer convenience by driving VAS customer offerings
  • Leveraging Walmart’s expertise and relationships
  • Accelerating growth in e-commerce, key categories and geographies
  • Relayed Game stores

Our costs

    2021 2020
  Depreciation and amortisation 18% 19%
  Employment costs 50% 50%
  Occupancy costs 7% 7%
  Other operating costs 25% 24%
Our cost differentiators
  • Fundamentally reset our cost base, driving lower operating costs
  • Leveraging Group collaboration to source the best quality products at the lowest cost
  • Centralised support functions enabling a customer-centric organisation
  • Outsourced SAP support to Walmart’s Indian Development Centre and financial transactions to Genpact
  • Established a cost effective integrated Supply Chain solution
  • Responsibly managing capital expenditure
  • Investing in growing through e-commerce, key categories and geographies