| Thu 8 Jan 2004, 15:42 | | MASSMART SALES UP 15,6% FOR THE SIX MONTHS TO |
|
MASSMART HOLDINGS LIMITED -
MASSMART HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1940/014066/06)
Share code MSM
ISIN ZAE000029534
("Massmart")
MASSMART SALES UP 15,6% FOR THE SIX MONTHS TO DECEMBER 2003
Massmart today announced that total sales for the 26 weeks to 28 December 2003,
including acquisitions, grew 15,6% to R12,2bn. Sales growth excluding
acquisitions was 11,1% and comparable store sales grew 8,4%. Acquisitions,
comprising Builders Warehouse, Tile Warehouse, and seven cash & carry outlets
contributed sales of R483m.
Commentating on the sales update, Mark Lamberti, Chief Executive and Deputy
Chairman, said: "We are delighted with the real sales growth from comparable
stores of over 8% off last year"s high base. This is the ultimate measure of
retail sales performance and with Massmart"s selling price inflation of zero
percent, the growth suggests that we have delivered exceptional value for our
customers. We are also pleased that the total sales growth of 15,6% constitutes
our 30th consecutive half year of record sales, sustaining our 10 year
compounded growth rate of sales of over 20%."
The inclusion of Builders Warehouse and Tile Warehouse combined with good growth
from Makro, Furnex and Game South Africa, resulted in general merchandise sales
growth double that of food - which experienced high inflation in the comparable
period last year. Lamberti said that although consumers had been particularly
responsive to substantially reduced prices on audio, video and computer
equipment, aggressive marketing and merchandising across the Group had improved
the average transaction per customer.
Commenting on Massmart"s zero inflation on selling prices, Lamberti said:
"Consumers and investors should recognise that the falling inflation and in some
cases the deflation we have experienced in consumer goods is unprecedented in
recent years. This is the first time in my 27 years in South African retailing
that the average inflation across such a wide range of merchandise has
approached zero, and our half year results will indicate that our management of
prices, margins, inventory and working capital has been entirely appropriate in
this environment."
Massmart"s interim results to December 2003 will be released on 26 February
2004.
Sandton
8 January 2004
For media enquiries:
Rob Pinker
Brunswick 011 268 5750 or 083 326 7794
Taryn Proksch
Brunswick 011 268 5750 or 083 273 1301
Date: 08/01/2004 03:31:22 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
