Africa & Middle East news & analysis

11 August 2020
South Africa-based Pick n Pay has published an earnings update, covering the 26 weeks to 30 August, which it says will ‘ reflect the considerable impact of the crisis to date ’. The retailer said the effect of three factors were expected to see it report a fall of more than 50% in its headline earnings per share. Mixed update highlights progress… In the update Pick n Pay highlighted how ‘ c...
10 August 2020
SPAR has announced it has expanded its global presence into a new market following the launch of the brand in the Republic of Ghana. SPAR Ghana to be operated by EcoDi SPAR said the brand had been licensed to EcoDi (Economic Distribution Company Ghana) in Ghana. EcoDi will use its existing infrastructure to support the supply chain to existing stores and to small-scale producers. The compan...
10 August 2020
As Majid Al Futtaim (MAF) enjoys fast-paced growth online and expands its range in Pakistan, we round up news and further developments from the retailer. Carrefour sees triple digit sales growth online… In an interview with CNBC Majid Al Futtaim’s chief executive, Alain Bejjani, discussed the ‘ fantastic surge ’ in online sales the company had seen during the pandemic. Bejjani said Carrefou...
15 July 2020
We round up developments from Kenya and Nigeria. Kenya: Carrefour expands its retail reach Carrefour, operated by Majid Al Futtaim in Kenya, has opened its eighth store in Nairobi’s Mega Shopping Mall. The store offers over 39,000 food and non-food items, with the retailer stating 99% of stock will be sourced locally. The store will also offer home delivery services aiding consumers struggl...
17 June 2020
South Africa-based, Walmart-owned Massmart has released a trading update for the 23-week period ending 7 June. In it the retailer underlined the challenging market conditions it has operated in and which continue to affect its performance. Total sales fall by 10.3% Massmart reported total sales of ZAR34.8 bn (US$2.0 bn). During the 23-week period total sales fell by 10.3%, while comparable ...
21 May 2020
South Africa-based, Walmart-owned Massmart has provided an update on its trading and discussed its current initiatives as it looks to conserve cash given the prolonged lockdown caused by the coronavirus (COVID-19) pandemic. Sales fall 11.9% due to lockdown in South Africa Massmart reported that total sales for the 19 weeks ended 10 May fell 11.9% versus the same period in 2019. It said tota...
19 May 2020
SPAR South Africa has released a trading update and trading statement providing mixed news from the company. While it reported strong revenue growth, the company said its basic earnings per share and headline earnings per share were set to fall. Positive revenue growth seen across all geographies… SPAR South Africa said it had enjoyed revenue growth of 10.1% in the six-month period to the e...
15 May 2020
Jumia, the Africa-based pure play ecommerce retailer, generated gross merchandise value (GMV) sales of €189.6m in its first quarter, 11.3% down on the same period in 2019. The fall in GMV came despite a 51% rise in the number of annual active consumers and a 27.7% increase in the number of orders made on its sites. Focus on profitability hindered GMV growth… Jumia noted its decision to reba...
15 May 2020
As part of its full year results announcement , South Africa-based Pick n Pay said the pandemic was expected to affect the margins and profitability in its 2021 financial year. It said the lockdown in its home market had led to the stopping of sales of key items including liquor, tobacco and clothing. Pandemic adding to existing operational pressures Retailers had already highlighted the...
15 May 2020
Saudi Arabia’s Ministry of Finance has announced it is to increase the rate of value added tax (VAT) to 15% from 1 July 2020 as it looks to respond to the economic challenges caused by the coronavirus pandemic. VAT change comes relatively soon after introduction Saudi Arabia only introduced VAT in 2018 and so the tripling to 15% is expected to likely to affect consumer spending in the mediu...