South Africa-based, Walmart-owned Massmart has said it has recently completed a store optimisation project. It noted the process ‘highlighted a number of underperforming stores in its portfolio’, which could lead to their potential closure.
Closures would focus on non-grocery banners…
Massmart said the store optimisation project had led to a potential store closure consultation process. It noted a ‘total of 34 Dion-Wired and Masscash stores… are potentially affected by this process’. The 34 stores are made up of all the 23 Dion-Wired stores in operation and 11 Masscash wholesale outlets.
Dion-Wired, an electronics and appliances specialist, has struggled against the backdrop of shifting shopper habits and constrained purchasing power, which has been driven by the challenging economic conditions in South Africa.
…And comes after challenging H1
Massmart reported a trading loss as part of its H1 results. It said that the loss was driven by an underperformance at Game South Africa, with this accentuated by issues at Game Africa and Dion-Wired.