JSE-listed retail group Massmart is accelerating its e-commerce strategy, thanks to the launch of the Makro and Builders mini apps within the VodaPay Super App ecosystem.
Massmart today released a sales update for the 39 weeks ended 26 September, announcing the VodaPay Super App has helped its online sales push, and the retailer’s e-commerce strategy is now paying off.
“Our e-commerce strategy continues to gain momentum with the launch of the Makro and Builders mini apps within the VodaPay Super App ecosystem. In addition, we have increased our stake in WumDrop to 100%, announced the acquisition of OneCart and are investing in improving in-store picking processes toward improving last mile delivery and customer confidence,” says Massmart.
The e-commerce sector has been on an upward trajectory since the outbreak of the COVID-19 pandemic, as more people opted to shop online.
The pandemic has fundamentally changed the role e-commerce plays in SA’s retail sector, fuelling a dramatic increase in e-commerce investments.
Massmart, led by CEO Mitchell Slape, has in recent weeks upped its e-commerce operations, as evidenced by the recent acquisition of logistics, multi-store, online shopping marketplace, OneCart.
The Gauteng-based start-up was established by partners Lynton Peters and Ariel Navarro in 2017, and counts leading retailers such as Woolworths Food, Pick n Pay Food, Dis-Chem and Clicks as clients.
Massmart says its total sales for the period under review amounted to R60.6 billion, increasing by 0.2% over the prior year, with comparable store sales increasing by 2.9% over the same period.
“Comparable store sales account for the impact of stores opened or closed during the period, and also for the impact of stores damaged as a result of the civil unrest and unable to trade. Sales from our South African stores amounted to R55.4 billion, increasing by 1.2% on the prior year, with comparable store sales increasing by 4.4%.
“Total sales from our ex-South Africa stores amounted to R5.2 billion, translating to a 9.2% decline in rand terms compared to the same period last year, with comparable stores decreasing by 9.9%. Sales in the rest of Africa were impacted by local currency weakness. In constant currency, sales from our ex-South Africa stores increased by 1.8%, with comparable store sales increasing by 0.9%.”
Massmart’s sales from continuing operations for the 39-week period amounted to R55.5 billion and represented an increase of 2.5% over the prior year, with comparable store sales increasing by 4.5%.
Similalry, sales from Massmart SA stores amounted to R50.2 billion and increased by 3.9% over the prior year period, with comparable store sales increasing by 6.3%.
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