Massmart

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Massmart
Public subsidiary
Traded as (JSE: MSM)
Industry Retail
Founded 1990
Headquarters Sandton, South Africa
Number of locations
412 (31 January 2017)[1]
Area served
Sub-Saharan Africa
Key people
Guy Hayward[2]
Chief Executive Officer
Revenue Sales: R35.6588 billion (US$3.033 billion) (Q2:2014)[3]
Increase Pretax: R729.9 million (US$62.083 million) (Q2:2014)[3]
Number of employees
45,000+ (2015)
Parent Walmart (2011–present)
Divisions Massdiscounters, Masswarehouse, Masscash, Massmart
Subsidiaries Makro
Game
Builder's Superstores
CBW
Website www.massmart.co.za

Massmart Holdings Limited (JSE: MSM) is a South African firm that owns local brands such as Game, Makro, Builder’s Warehouse and CBW. It is the second-largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and wholesaler of basic foods.[4] As of 31 January 2017, Massmart operated 412 stores in South Africa and 12 other Sub-Saharan countries.[1] Its head offices are in the Massmart House in Sandton, City of Johannesburg Metropolitan Municipality.

History[edit]

Massmart was founded in 1990, beginning with the acquisition of six Makro stores. It listed on the JSE Limited on 4 July 2000 at R12.50 per share. Since its founding, Massmart has grown both organically and by acquisition. The firm acquisition history includes:

  • 990 Shield members in March 1992
  • 420 Dion stores in May 1993
  • 814 CCW stores in June 1998
  • 26 Game stores in July 1998
  • 6 Jumbo stores in April 2001
  • 122 Browns and Weirs stores in July 2002
  • 69 Builders Warehouse stores in October 2011
  • 13 De Lay Rey stores, 14 Servistar stores, and 34 Federated Timber stores in June 2005
  • 16 Cambridge Food stores in December 2008
  • 43 Buildrite stores in June 2009
  • In December 2011 South Africa's Competition Tribunal approved the acquisition, with conditions, of Fruitspot (wholesaler of fresh fruits and vegetables) and the Rhino Group.

Divisions[edit]

A Makro store in Milnerton, Cape Town.

Massmart's stores are organized into 4 divisions. The stores included in each division are as follows:

  • Massdiscounters
    • DionWired (operates in South Africa)
    • Game (operates in South Africa, Botswana, Ghana, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda, Zambia and Kenya - beginning May 2015[5])
  • Masswarehouse
    • Makro (operates in South Africa, two stores in Zimbabwe were sold in fiscal year 2011)
    • The Fruitspot (operates in South Africa)
  • Massbuild
    • Builders Warehouse (operates in South Africa, Botswana and Mozambique)
    • Builders Express (operates in South Africa)
    • Builders Trade Depot (operates in South Africa and Mozambique)
    • Builders Superstore (operates in South Africa)
    • Kangela (operates in Mozambique)
  • Masscash
    • CBW (operates in South Africa, Botswana, Lesotho, Mozambique, Namibia, and Swaziland)
    • Jumbo Cash and Carry(operates in South Africa and Botswana)
    • Trident (operates in Botswana)
    • Cambridge Food (operates in South Africa)
    • Shield (operates in South Africa, Botswana, Lesotho, Namibia, and Swaziland)

Walmart acquisition[edit]

In November 2010, Walmart, the American super chain conglomerate made a bid to acquire majority shareholding (51%), in Massmart. At that time, the offer was valued at approximately R:17 billion (approximately US$2.54 billion or ₤1.54 billion).[6][7] On 18 January 2011, Massmart shareholders voted in favour of Walmart's offer of R148 per share.[7] The South African Competition Commission Tribunal gave its approval of the acquisition of 51% of the firm in May 2011.[8] Shortly thereafter, in June 2011, Walmart completed the purchase of 51% of the company's stock.[9]

In August the South African ministries of trade and industry, economic development and agriculture and fisheries lodged an appeal to the decision of the Competition Tribunal's decision to allow the merger with minimal conditions, this follows an appeal filed earlier by SACCAWU, a local labor union. In March 2012 the appeals court dismissed the case by the governmental ministries, but acknowledged that there were legitimate concerns about the effect of the deal on small producers and employment. The appeals court decision effectively put an end to the legal challenges to the merger.[10]

References[edit]

  1. ^ a b "Information for Walmart Investors: Unit Counts & Square Footage". Retrieved 21 February 2017. 
  2. ^ Moorad, Zeenat (13 April 2014). "Changing of The Guard At Retail Giant Massmart". Business Day (South Africa). Retrieved 12 February 2015. 
  3. ^ a b Massmart, . (August 2014). "Interim Results to 29 June 2014" (PDF). Massmart.co.za. Retrieved 12 February 2015. 
  4. ^ Massmart, . (2014). "Overview of Massmart". Massmart.co.za. Retrieved 12 February 2015. 
  5. ^ Business Daily Reporter, . (12 February 2015). "Nairobi’s Garden City Mall To Open Doors In May". Business Daily Africa (Nairobi). Retrieved 12 February 2015. 
  6. ^ Smith, Nicky (29 November 2010). "Wal-Mart Offers 16.5 Billion Rand for 51% of Massmart". Bloomberg News. Retrieved 12 February 2015. 
  7. ^ a b BBC News, . (17 January 2011). "South African Retailer Massmart Backs Sale To Wal-Mart". BBC News. Retrieved 12 February 2015. 
  8. ^ BBC Business, . (31 May 2011). "Wal-Mart Cleared To Buy South Africa's Massmart". BBC News. Retrieved 12 February 2015. 
  9. ^ Team, Trefis (10 June 2011). "Wal-Mart Takes On Africa With Massmart". Forbes.com. Retrieved 12 February 2015. 
  10. ^ Tiisetso Motsoeneng, and Wendell Roelf (9 March 2012). "Wal-Mart Wins Final Go-Ahead for Massmart Deal". Reuters. Retrieved 12 February 2015. 

External links[edit]