Retailer Massmart Holdings showed sales growth over the past six months, but growth was behind 2006 figures.
Between the end of June and December 23, the company sold goods worth R20,1bn, 11,6% up on the previous corresponding period. On a like-for-like basis, growth was 9,5%.
In 2006 the company reported revenue of R18bn, 16,4% higher than the year before. Like-for-like sales were up 11,9%. In-store inflation across the group was 6,3%, below national inflation, which hit 7,9% in November. In 2006, inflation was 3,7%. Massmart said the 11,6% revenue growth excluded sales made on December 24, which fell into the following week and meant that the figures were not directly comparable.
Chris Gilmour, an analyst at Absa Asset Management Private Clients, said last month's sales were the equivalent of about three normal months.
Including the week in which Christmas fell, like-for-like sales would have been up 10%, which Massmart said was “a more accurate reflection of sales performance over the period”. December 24 is historically characterised by a last minute rush. The day would have accounted for about 0,5% of growth in revenue during the period, said Gilmour.
Massdiscounters, which consists of the group's Dion and Game stores, grew sales 7,8%, with inflation of 2,7%.
Masswarehouse, which houses the company's Makro outlets, grew 12,6%, with inflation of 5,9%. Massbuild, which houses Builders Warehouse, Builders Express and Builders Trade Depot, grew 16,2%, with inflation of 7,4%.
Article via I-Net-Bridge
