WALMART-OWNED RETAILER
Massmart stock tumbles after CEO calls it quits early
Massmart’s share price had its biggest fall in six weeks on Monday when it said CEO Guy Hayward was calling it quits after less than five years of trying to turn around the fortunes of the Walmart-owned retailer. Hayward’s resignation eight years before retirement age comes at a time when the consumer goods group is struggling to live up to the expectations of the 2011 merger with US retail giant Walmart amid a slump in consumer confidence due to a sluggish SA economy. Massmart, which in March was forced to cut dividends to shareholders 40% after a 32% drop in earnings in the year to December, will also lose CFO Johannes van Lierop in August, after he told the company in February that he would not be extending his tenure for personal reasons. The retailer’s share has lost about a third of its value since the beginning of June 2014, when Hayward officially took over as CEO, a dismal performance even in the context of a weak retail environment. During that period, the general retailer...
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