comprises the 130-store General Merchandise discounter and Food retailer Game, which trades in South Africa, Botswana, Ghana, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda and Zambia; and the 23-store Hi-tech retailer DionWired.

Total sales for the year increased by 10.2%. Comparable sales grew by 4.8% with product inflation of 3.1%. Game South Africa had a better second-half and an especially strong fourth quarter where comparable sales grew by 8.1%. The weak performance for much of the 2014 financial year however, caused pressure on overall profitability resulting in Massdiscounters’ trading profit before interest and tax decreasing by 44.7%. For the second-half of 2014, Game SA’s trading profit before interest and tax grew ahead of sales. The roll-out of Fresh continues with 66 Game stores now offering this category. Food and Liquor sales comprise 19.4% of Game total sales and Food and Liquor’s growth in these comparable stores remains strong at 19.4%.

DionWired’s total sales growth was 13.2% and this brand remains the destination store within its category. The DionWired online offering now comprises 2.3% of total DionWired sales (December 2013: 1.8%).

Game Africa’s total Rand sales and sales in local currencies increased by 18.2% and 16.6% respectively. Profit growth was below sales growth due to operational challenges, currency devaluation and the impact of our new stores opened in Nigeria in 2013 and 2014. The latter two issues impacted profit by R40 million.

For the past two years we have defended several legal actions filed or threatened by three of the dominant Food retailers in South Africa.These actions are based on lease exclusivity clauses that seek to restrict competition for the benefit of the dominant retailers. There have been no new legal actions since July 2014. We have defended these actions as we believe the blanket enforcement of these clauses to be anti-competitive. In October 2014, Massmart lodged a formal complaint with the Competition Commission against each retailer who has filed legal action against us.

Eleven Game stores (two in Africa) were opened and two closed; and two DionWired stores were opened and one closed, increasing trading space by 30,857m² (6.5%).



comprises the 19-store Makro warehouse-club trading in Food, General Merchandise and Liquor in South Africa; and The Fruitspot.

Makro’s total sales for the year increased by 11.8%. Comparable sales increased by 10.7% with product inflation of 5.5%. Makro’s trading profit before interest and tax increased by 11.2% as the business traded superbly in a challenging Wholesale Food environment, outperformed in Liquor and General Merchandise, and extracted value from the new stores opened in 2011-12. Our Food business continues to benefit from increased sales to retail customers and we have gained additional share in the Retail and Wholesale Liquor markets. The General Merchandise and Liquor online offerings, launched in March and October 2014 respectively, are trading above expectations but are not without their logistical challenges.

The Fruitspot grew sales and profit, and compared to December 2013 has doubled its intra-Group sales.

There was no movement in stores in the 2014 financial year.



comprises 100 stores, trading in DIY, Home Improvement and Building Materials, under the Builders Warehouse, Builders Express, Builders Trade Depot and Builders Superstore brands in South Africa, Botswana and Mozambique.

Massbuild grew total sales for the year by 14.6%. Comparable sales increased by 9.1% with product inflation of 5.9%. Builders Warehouse and Builders Express performed exceptionally, and are clearly market leaders in their categories, while Builders Trade Depot struggled, possibly as a result of the success of the other two. Massbuild’s trading profit before interest and tax increased by 15.0%.

The new Superstore format continues to exceed expectations and we will soon expand stores beyond the Gauteng region. We are very encouraged by the success of our five stores in Botswana and Mozambique. The new store in Maputo, opened in July 2014, is trading particularly strongly and so we are actively exploring sites in other southern African countries.

Three Builders Warehouse stores were opened and two closed; four Builders Express stores were opened and two closed; one Builders Trade Depot store was opened; and four Builders Superstores were opened, resulting in net trading space increasing by 25,992 m² (6.3%).



comprises 73 Wholesale Cash and Carry and 47 Retail stores trading in South Africa, Botswana, Lesotho, Mozambique, Namibia and Swaziland; and Shield, a voluntary buying association.

In the extremely competitive South African Wholesale and Retail Food environments, total sales increased by 8.0%. This was impacted by slowing inflation in our categories. Comparable sales increased by 6.3% with product inflation of 4.8%. Sales growth of 2.7% in our South African Wholesale business was affected by severe challenges at our two largest stores; adjusting for these saw acceptable sales growth of 5.3%. Sales growth in our non-South African Wholesale businesses was 8.0% and we remain excited at the potential of Wholesale and Hybrid formats in southern Africa. Masscash Retail performed very well, reporting comparable sales of 9.7%, improving profitability and strong customer price-perception.

Masscash’s trading profit before interest and tax increased by 14.9%.

Two Wholesale stores were closed; three Retail stores were opened and three were closed, resulting in net trading space increasing by 1,138m² (0.3%).