Massmart saves cash as sales fall due to lockdown
Group is in talks with landlords and is cutting capital expenditure as Covid-19 hits sales
Walmart-owned retailer Massmart, whose brands include Makro and Game, says it is cutting capital expenditure and participating in talks with landlords over rental relief as it seeks to preserve cash.
The group, which has about 400 stores across Sub-Saharan Africa, said on Monday total sales for the 19 weeks ended May 10 fell 11.9% to R28.2bn.
The group said it has met all payment obligations throughout the lockdown period and has continued to pay all employees in full, while the outlook for SA’s trading environment remains highly uncertain.
The retailer will be “sensibly” reducing capital expenditure, and negotiating and participating in the rental relief package from the Property Industry Group, Massmart said.
SA’s three major representative bodies for real estate have been engaging with tenants on relief packages, for example rental discounts whereby rent will be waived partially or completely, or deferred.