Cape Town – Massmart said it will open 13 stores in 2016, despite tough economic trading conditions caused by high inflation and low economic growth in South Africa.
Massmart [JSE:MSM] CEO Guy Hayward told investors on Thursday that the new stores are in addition to the seven stores they have opened since 2015, “most reporting very strong sales”.
“We estimate that our stores opened in South Africa since January 2015 have contributed 1 300 permanent and 5 000 temporary or indirect jobs.”
For the first 21 weeks of the 2016 financial year, Massmart’s total sales growth was 9% and sales growth 6.7%, with year-to-date sales inflation of 5.4%.
“Despite the challenging trading conditions in our non-food areas, our strong food sales, good margin management and effective expense control should assist in delivering a satisfactory performance for the six months to June 2016.”