Strategic agenda

We have made good progress in our four priorities of: completing the Walmart transaction; Walmart integration; maintaining trading momentum; and being a good Corporate Citizen.

Legally, the Walmart transaction is complete, save for the anticipated final ruling from the Competition Appeal Court on the amount, purpose and governance of the Supplier Development Fund. The three other conditions from the Competition Tribunal have been implemented. 222 of the 503 previously retrenched Massdiscounters employees have been re-employed across the Group. We began implementing the Supplier Development Fund in terms of our commitments but, pending the Appeal Court ruling, have put any new commitments on hold.

The formal Integration project is complete. Governance and reporting have been aligned and the basic processes to continually extract value from the transaction are in place. The formal Integration process will wind down over the next 12 months whilst processes are handed over to line-management. About 368 Massmart employees attended the annual Walmart shareholders’ conference, completing the process of welcoming Massmart into Walmart.

On Maintaining Trading Momentum, all strategic agenda projects have progressed well. We completed the Massdiscounters RDC network, opened the first Food RDC, improved our competence in Fresh, increased Private Label and Financial Services penetration, and continued with Food Retail.

On Corporate Citizenry, we maintained our Level 4 BBBEE status; have driven advocacy on environmental sustainability with our suppliers; reduced our Group’s environmental footprint through investment in waste management and energy efficiency; and maintained our private-public partnership with the Departments of Basic Education, South African Police Service, Agriculture, Forestry and Fisheries, Treasury, SABS and SANDF.