Strategic agenda

The legal aspects of the Walmart transaction and the integration activities are complete and we are now able to focus on improving the operations and implementing our Strategic Agenda.

We are focused on “Saving you money, so you can live better”, and becoming Africa’s most trusted retailer.

The first phase of our Group-wide supply chain investments will be finished by the end of 2013, when we will have completed the network of three Massdiscounters’ RDCs, three Makro Regional Warehouses, one Cambridge DC and one Massbuild Central DC. Alongside investments in skills and systems, this completes the reengineering of Massmart’s supply chain. The benefits of the investment should be visible in the next five to ten years as the network is optimised.

We have also completed the first phase of our investments in Retail Food in Cambridge, Game Foodco, Makro Fresh and Saverite. We have successfully established ourselves into the Food Retail market with an estimated presence of R10 billion. From this base the Food Retail business should grow in size and profitability, from organic growth and conversions.

We continue to expand Game and Builders Warehouse into Africa. Several new sites have been approved in existing African markets and Game sites have also been approved in Angola and Kenya, both of which are new markets for Massmart. The Africa Food Retail strategy remains in the planning phase.

Despite the new targets in BBBEE Codes of Good Practice and the dilution of our BBBEE transaction as part of the Walmart transaction, we have still maintained a Level 4 status.