Massmart may need to sell more assets after heavy loss, say analysts
Damage and closure of stores put pressure on a retailer that was already struggling to return to profit
The road to recovery for Massmart, the owner of Makro, Game and Builders, has become even harder, with the riots and looting that rocked the country in July set to push it to a loss of more than R2bn.
In a trading update that sent its shares tumbling to their lowest intraday level in almost a year on Friday, the company, owned by Walmart, the world’s biggest retailer after tech giant Amazon, said its losses for the year to December probably widened by about a third to between R2.14bn and R2.4bn. That had analysts speculating that it might need to sell more assets as it looks to end a three-year losing streak...
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