Massmart reports lower sales due to Covid-19

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Massmart reports lower sales due to Covid-19

Published Date: 2021-01-22 | Source: Stephen Gunnion | Author: Stephen Gunnion

Massmart reports lower sales due to Covid-19

The retail and wholesale group says fourth-quarter sales were weaker but showed an improvement from earlier in the year.

Massmart says sales continued to fall in the fourth quarter of last year, partly due to the latest ban on alcohol sales. However, the decline was less severe than earlier in the year as other restrictions were lifted, allowing trading to resume in most categories.

In a sales update, the retailer and wholesaler reported a 4.1% drop in sales to R25.6 billion for the three months to 27 December. While November's Black Friday sales weren't as good as the previous year's, its extension of promotions throughout the month helped mitigate the softer performance. Foot traffic and sales remained muted in December, albeit with stronger sales performances in the home improvement and DIY categories.

The fourth-quarter performance left full-year sales 7.7% down at R86.5 billion. As previously reported, it estimated that it lost sales of about R5.7 billion over the course of the year as a result of Covid-19 trading restrictions. Sales at its SA stores were down 7.9% for the year while turnover at its stores in the Rest of Africa decreased by 5.4%.

Massmart's full-year results are scheduled for release on 8 March. Its shares closed 0.3% down at R40 yesterday.





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