RETAIL SPENDING
Massmart shares surge on surprise results
Retailer Massmart’s share price jumped almost 9% on Thursday, after the group reported a better than expected performance for the half-year to end-June. Despite this, analysts maintain that although Massmart is benefiting from improving consumer confidence, retail spending continues to be constrained by rising fuel costs and tax increases. The company reported total sales for the 26-week period of R41.6bn, or an increase of 1.9%, with comparable store sales rising 0.2%. Including the results of business unit Shield — which Massmart no longer includes in group sales figures — overall sales declined 2.2% and comparable stores 3.9%. Although subdued, the results were still better than expected due to the difficult operating environment, said 36One Asset Management analyst Daniel Isaacs. "There is little to no inflation to help the revenue line and volumes are still muted. This presents challenges when facing a cost growth well above this," said Isaacs. Massmart’s share price rose 7.98%...
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