Limping Game proves a loser for Massmart
Attempt to introduce supermarket-style items backfires
Walmart-owned Massmart has a problem child in its Game department stores, which this week again emerged as one of the main contributors to the retailer's weak growth that sent its shares crashing as much as 15%. Profits for the retailer, which also owns Makro, fell close to 17% for the year. Contributing to the weak performance was a drop in sales to R19.7bn from R20bn in its mass discounters unit, made up of Game and Dion Wired stores. The stores reported trading profits of R32.6m for the full year to end-December, a more than 91% plunge from the R373.5m reported previously. The report card ". that disappointed us the most is the Game result", Guy Hayward, CEO of Massmart, told investors on Thursday. Hayward said the relocation of Game's head office from Durban to Johannesburg, which cost R116m, also had an impact on the almost 50-year-old store. The retailer said it saw a lot more opportunity in Johannesburg than in Durban. "We did that because we wanted access to a bigger talent ...
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