OUR BUSINESS MODEL

Massmart is a managed portfolio of four divisions, each focused on high-volume, low-margin,
low-cost distribution of mainly branded consumer goods for cash, through 359 stores in
12 countries in sub-Saharan Africa.

MASSMART GROUP

Massmart has evolved into a business model that empowers its Divisions to take trading decisions suited to their individual operating needs but within a strategic operating and financial framework set by the Group. This has several advantages. The framework guarantees consistent compliance with the best governance standards and national legislative requirements. It commits each Division to implementing Massmart’s core strategy of being a high-volume, low-margin distributor of quality branded consumer goods for cash, and ensures expansion plans add net value to the Group.

MASSMART HOLDINGS

Massmart Holdings performs the Group management role and defines the strategic and broad operating principles that guide the Group’s activities. Its functions include budget approval and capital allocation, store site location, executive appointments, development and retention, corporate affairs, human capital and internal audit. A business intelligence unit collates and analyses Divisional data to inform Group strategy and decision-making.

MASSMART SHARED SERVICES

Massmart Shared Services implements collaborative agreements reached by Channel. The most important are Group supplier negotiations for all products sold across the Group. Shared Services also handles the Group’s Payroll functions, the Shipping and associated Treasury functions for direct imports, and managing private or exclusive brands shared across Massmart’s trading Divisions.

MASSMART CHANNEL

Massmart Channel consists of formal trading and functional forums where ideas on collaboration across Divisions are shared. Trading forums cover Food and Liquor, General Merchandise, and Cellular. Functional forums include Technology, Information and Process (TIP), Operations, Supply Chain and Human Resources. Trading forums are headed by Divisional CEOs and functional forums are headed by Group Executives. Directors and Executives from the Divisions attend forums in their specific areas of competence. Once consensus is reached on a collaborative proposal, the Executive Committee approves whether it should be rolled out across the Group.

MASSMART DIVISIONS

Massmart’s Divisions comprise Massdiscounters, Masswarehouse, Massbuild and Masscash. Each has a dedicated management team focusing on a particular retail or wholesale format, merchandise proposition and customer base, and is empowered to take trading decisions within a strategic framework and governance structure defined by the Group.