Sales rise 0.5% to reach R42.5bn

The Star Early Edition - - COMPANIES & NEWS - – Sizwe Dlamini

MASS­MART, which owns lo­cal brands such as Game, Makro and Builder’s Ware­house, re­ported yes­ter­day that to­tal sales for the half year to June 25 amounted to R42.5 bil­lion, rep­re­sent­ing an in­crease of 0.5 per­cent over the prior com­pa­ra­ble pe­riod. Com­pa­ra­ble store sales de­creased by 1.6 per­cent and prod­uct in­fla­tion was es­ti­mated at 3.2 per­cent. The com­pany has pre­vi­ously said that the marked dif­fer­ences in the per­for­mances of food and non-food cat­e­gories across the coun­try and in most parts of sub-Sa­ha­ran Africa, were caused by weak con­sumer spend­ing, es­pe­cially on dis­cre­tionary items, and low con­sumer con­fi­dence. “Con­se­quently at a group level, our to­tal sales growth in food (be­ing food and liquor) is 3 per­cent and in non-food (be­ing gen­eral mer­chan­dise, home im­prove­ment and cel­lu­lar) is mi­nus 2.9 per­cent,” Mass­mart said. The com­pany said to­tal and com­pa­ra­ble sales growths from its South African stores were 1.7 per­cent and mi­nus 0.2 per­cent, re­spec­tively. There were pos­i­tive com­pa­ra­ble sales growths in Game, Mass­ware­house and Mass­build. Mass­mart’s fi­nan­cial re­sults for the 26 weeks to June 25, 2017, will be re­leased on the Stock Ex­change News Ser­vice of the JSE on Au­gust 24, 2017. Mass­mart shares gained 0.63 per­cent on the JSE yes­ter­day to close at R105.94.

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