Massmart growth slows as recession bites

On Monday, South African food and general merchandise retailer Massmart reported a slowdown in half-year sales growth as the recession in South Africa starts to take hold.

Massmart, owned by US retailer Wal-Mart Stores, said total sales increased just 0.5% to R42.5 billion ($3.28 billion) in the six months to 30th June, as weak consumer spending and low consumer confidence weighed on its business. In the same period last year, sales had increased 8.7%.

Data released last month showed that South Africa has slumped into its first recession in eight years, with political turmoil sending business and consumer sentiment to multi-year lows.

Massmart which sells food, general merchandise and household appliances in 13 African countries, said its comparable stores sales declined by 1.6%.  While food and liquor sales increased 3%, general merchandise, home improvement and mobile device sales decreased 2.9%.

Source: Insight DIY Team

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