Massmart sees 20-week single-digit sales growth
For the first 20 weeks of the 2015 financial year, Massmart's total sales growth was 9.5% and comparable sales growth 7.4%, with year-to-date sales inflation of 3.9%.
Massmart said the meeting of Reserve Bank's monetary policy committee last week noted that South Africa's economy remained muted, with most risks tilting to the downside, including food inflation, interest rates and the rand's exchange rate.
"Retail competition remains intense, which is good news for customers," the retail giant said.
Massdiscounters' total sales growth was 10.5% and comparable sales growth 5.5%, with inflation of 2.2%.
In South Africa, Game had strong comparable sales growth of 6.8%, which flowed from improving operational execution and clarity on its merchandise range and offering.
"Pricing remains extreme as players fight for share, and so whilst we are seeing margin recovery in Game it is not as strong as might be expected," Massmart said.
Trading across most African countries was tough for diverse reasons, but common factors included lower resource prices and strong dollar, it said.
Makro was performing well, with total and comparable sales growths of 11.6% and inflation of 4.4%.
Massbuild's total sales growth was 15.5% and comparable sales growth 11.6%, with inflation of 5.4%.
In Masscash, wholesale's total sales growth was 2.8% and comparable sales growth 2.9%, with inflation of 3.9%. "Commodities are an important component of our basket and this category's challenges are causing margin pressure," Massmart said.
The retailer also said the disturbing xenophobic outbreaks had caused sporadic disruptions to both the group and its customers' trading.
"Local and foreign small traders make the South African lower-income informal sector vibrant and they trade at exceptionally low margins, thereby benefitting their customers. As seen in Game, trading conditions in our Africa Wholesale stores are tough with total sales growth of 4.0," it said.