Overview

Investment proposition
Massmart, Africa’s second largest retail group, comprises two Business Units operating 420 stores, across 13 sub-Saharan countries. Through our widely recognised, differentiated retail and wholesale formats, we have a leading share in the General Merchandise, Liquor, Home Improvement and Wholesale Food markets.
Strategic and structural clarity
- Massmart operates through four focused Divisions, each of these a leader in its target market and business model
- Additional value is created through inter-Divisional collaboration
- Behaviour is aligned through short-and long-term incentives
- Organic and acquisitive growth criteria is strictly adhered to
Management depth, quality and diversity
- The 47 Group and Divisional Executives hold 75 qualifications of which 55 are degrees, are an average age of 37 years, and 15% are African, Coloured or Indian
Diversification
- Merchandise – Massmart is the second-largest distributor of consumer goods in Africa, and is the leading retailer of general merchandise, liquor, home improvement and building supplies, and the leading food wholesaler
- Formats – trading through a variety of formats
- Customers – serving all mass-market consumers
- Geography – operating in 13 sub-Saharan African countries
Low risk
- Earnings underpinned by high cash generation
- Limited financial leverage
- Conservative through-the-cycle store opening plans
Good governance
- Board composition – two executive and eights non-executive directors of whom five are independent.
- Recognised record of good disclosure
- Compliant with King IV Report on Corporate Governance for South Africa and included in the FTSE/ JSE Responsible Investment Top 30 Index
- Member of the Ethics Institute of Southern Africa
- Founding member of the Institute of Directors
Growth
- Continuously improving the productivity of capital, space and labour
- Strengthening supply chain activities
- Upweighting Group private label efforts
- Complementing store growth through targeted acquisitions and greenfield opportunities
- Expansion into food retail through Cambridge Foods, Game Foodco and Makro Fresh