Shares in Massmart Holdings continued their descent today (9 May) after sales gains in the first nine months of the South African retailer’s financial year missed expectations and it announced a slew of management changes.
In a regulatory filing yesterday, Massmart, in which Wal-Mart Stores owns a majority stake, said total sales in the 44 weeks to 29 April rose to ZAR51.7bn (US$6.43bn), up 14.7%. However, according to reports, the market had expected to see sales growth of closer to 16%.
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Comparable-store sales rose 8.9% and inflation for the period stood at about 1.4%, the retailer added.
Shares in Massmart fell as much as 2.5% yesterday and were down for a second day today, dropping a further 2.8% to ZAR15,961 at time of press.
In a separate announcement, Massmart revealed a number of management changes designed to increase the retailer’s focus on increasing its pan-African footprint.
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CEO Grant Pattison has taken on responsibility for driving growth in South Africa and on the wider African continent, including the implementation of Massmart’s food retail strategy.
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By GlobalDataOther board changes include Guy Hayward, who has been promoted from chief financial officer to chief operating officer. Ilan Zwarenstein, who has served as group finance executive since 2006, will assume the role of financial director, and will be appointed to the board and the Massmart executive committee, the group added.
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