Walmart-owned Massmart on Saturday, 1 October, said South African consumers could expect more extended price cut promotions in future. The new campaign will run from now to 4 December.
Massmart CEO Grant Pattison said that about 94% of the food products sold in the group's first promotion were produced locally. The group has also committed to opening 23 new stores in the next eight months, creating about 100 permanent jobs per store. "We will create 15000 retail jobs within the next three years," Pattison said.
The planned roll-out includes two Makro stores, six Game stores, four Dion Wired stores, seven Cambridge Food stores, one Builders Warehouse store, two Builders Express stores and a Builders Trade Depot.
The group also says it aims to procure an additional R60bn in local fast-moving consumer goods and food products over the next five years. Pattison said the R100m supplier development fund, a condition set by the Competition Tribunal before it approved the merger between Walmart and Massmart, was making good progress.
"The new head of the supplier fund began work three weeks ago and has already developed a skeleton plan. We will be announcing some of the projects in the next few weeks.
"We have been working with different people, from fishermen in the Western Cape who have a fishing licence and no trawler, to factories around the country which need to expand. We have opened up channels for South African suppliers to engage with Walmart too," he said.
"We have gone on a road show to explain how Walmart works and there are a few suppliers engaged in the process."
Pattison said Builders Warehouse customers had responded best to the first round of advertised promotions. He added that there would always be a promotion on the market at any given time.
"The important thing about (the extended price cut promotions) is lots of savings for us and the supplier, and that we are able to invest the savings back into the price."
The R16,5bn acquisition became effective on 20 June after receiving Competition Tribunal approval over strong objections from the trade union movement in particular.
Three government departments have subsequently lodged an appeal, which will be heard by the Competition Appeal Court this month.
However, retail analysts say that with Massmart going full-steam ahead with price cut promotions and the implementation of its supplier development plan, the substance of the appeal may no longer be relevant.
Source: Business Day
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