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Massmart, the owner of brands including Game, Makro, Builder’s Warehouse on Thursday (21 January) provided an update on sales for the 52 weeks ended 27 December 2020, showing a 7.7% decline.<\/p>\n
It noted that trading for the fourth quarter of 2020 saw many of the previously imposed Covid-19 related trading restrictions lifted, which allowed trading to resume in most categories.<\/p>\n
Liquor trading, however, continued to be impacted by limitations on trading hours as well as reinstated trading restrictions as announced by the government in mid-December, the group said.<\/p>\n
The economic impact of the pandemic on consumer spending was evidenced by a general reduction in foot traffic, particularly in regional shopping malls, impacting sales in many merchandise categories during the fourth quarter.<\/p>\n
“Specifically, and aligned to what was seen throughout the sector, sales over the traditional November 2020 Black Friday trading period were softer than those seen in 2019.”<\/p>\n
The company said that the extension of Black Friday promotions throughout the month of November did mitigate the impact of softer Black Friday weekend sales to some extent.<\/p>\n
Foot traffic and sales remained muted in December, albeit with stronger sales performance in home improvement and DIY categories, Massmart said.<\/p>\n
Total fourth quarter sales of R25.6 billion represented a decrease of 4.1% over the same period last year, with comparable store sales decreasing by 3.6%.<\/p>\n
This represented a slight improvement in the trajectory of H2 sales, which ended with a decrease of 5.9% over the same period last year, with comparable store sales decreasing by 5.6%.<\/p>\n
For the 52-week period, Massmart said that total sales amounted to R86.5 billion, representing a decrease of 7.7% over the same period last year, while
\ncomparable store sales decreased by 7.5%.<\/p>\n
Sales in South African stores decreased by 7.9%, while sales from stores in the rest of Africa decreased by 5.4%.<\/p>\n
As previously announced, Massmart estimated lost sales as a result of Covid-19 trading restrictions, to be around R5.7 billion.<\/p>\n
The group said it will provide further detail on its sales performance as part of its annual results release on 8 March 2021.<\/p>\n