Reviewed Interim Results for the 26 weeks ended 26 June 2022
Massmart is an African retail group, with total Group sales of R41.3 billion for the 26 weeks ended 26 June 2022. Through our widely recognised and differentiated retail and wholesale formats, represented in 403 Retail and Wholesale stores in 13 sub-Saharan countries, we have leading market shares in the general merchandise, liquor, home improvement and wholesale food markets. The Group’s key foundations of high volume, low cost, responsible business and operational excellence enable our price leadership.

Holders of Massmart Holdings Limited ordinary shares (“Massmart Shareholders”) are hereby advised that the Board of Directors of Massmart Holdings Limited (“Massmart”) and the Board of Directors of Walmart Inc. (“Walmart”) have reached in principle agreement regarding the terms and conditions of a potential offer by Walmart to acquire all of the issued ordinary shares in Massmart Holdings Limited (“Ordinary Shares”), other than those Ordinary Shares already indirectly held by Walmart through its wholly-owned subsidiary, Main Street 830 Proprietary Limited, or a treasury shareholding subsidiary of Massmart, pursuant to a scheme of arrangement and standby general offer (“Potential Offer”). If the Potential Offer is made and implemented, it would result in the delisting of all the Ordinary Shares from the main board of the JSE.

Developing our Leadership
The Massmart Leadership Programmes start at New Leader to Executive Development and are run through partnerships with local providers and our Walmart colleagues, they include:

• Operations Leadership Journey- building operational leadership excellence.
• Leadership and the Future of Retail – developing future-fit retail leaders who are able to navigate the complexities of the future world of retail.
• The Integrated Leader – focused on empowering leaders with the essential skills, competencies and qualities necessary for coaching strong organisational cultures and ensuring sustainable growth.
• Personal Mastery – harnessing connection and collaboration skills to enhance personal and professional relationships
• Next Generation Grow, Empower, Move and Soar (GEMS) – aimed at accelerating our transformation agenda, this programme provides female associates in middle-management with a springboard for succession, progression and mobility.

Our key functional and technical training programmes:
• The Merchant Development Programme
• Fulfilment Skills Programme
• Management Skills Programme
• Retail Management Programme

Digital learning
We recognise the role of digital as an enabler for continuous learning. That is why this is a focus for us as we look for innovative ways to upskill our associates. Through our digital learning platforms we are able to provide users with a wide variety of short courses in video, audio and e-book format, which make it possible for associates to learn remotely and at their own pace.

Massmart Launches New Small Appliances Private Brand
As part of the expansion of its private brand offering, Massmart has acquired appliance brand, Eiger, as part of its Private Brand portfolio. The acquisition of Eiger is the outcome of thorough analysis of the local appliance market. “Through our ongoing research, we identified a clear gap in South Africa for a brand of well-priced, beautifully designed small appliances that not only have all the features customers expect in a premium product, but also add to the aesthetic appeal of their kitchen countertops” says Trevelyan Hall, Group Private Brand Merchandise Executive at Massmart. “This led us to Eiger, a relatively new brand in the market which has earned excellent reviews from customers since it launched.”

The group notes that even with rising pressure on household budgets, research shows that small appliances are still viewed as a necessity by the South African consumer. “As cooking oil prices rise, for example, the air fryer remains a popular item with customers and is now seen as a staple item in the kitchen,” says Hall. To add additional value, Eiger promotes a healthy modern lifestyle by offering free recipe books and meal planning templates to customers.

Sourced from: Massmart powered by Walmart. 2022. Available: https://www.massmart.co.za/ (Accessed 14 January 2023).

In answering the questions below, consider the following:
• Maintain a balance between theory and application;
• All theory must be referenced from the textbook and other credible sources;
• You are required to paraphrase and explain concepts in your own words, with references.

Q.1.1 Discuss the concept of ordinary shares with examples from the case study. (10)

Q.1.2 Analyse Massmart’s human resource development methods. (10)

Q.1.3 Distinguish between manufacturer and dealer brands with application to Massmart. (10)

Q.1.4 Recommend criteria for market segmentation for Massmart’s Eiger brand. (10)

Question 2 (Marks: 35)
Before a new product can be launched, important decisions and steps need to be taken from an operations and financial management perspective. Using your own idea for a new product, write a report applying the following themes from your prescribed textbook to your product:

• The components of the product (Chapter 11, section 11.4.2.2)
• Stages in the design of the product (Chapter 11, section 11.4.2.3)
• A source of short-term financing for the new product development (Chapter 14, section 14.10.2).

Answers to Above Questions on Massmart Case Study

Ordinary shares are also known as equity shares and they indicate the ownership interest in a company. The ordinary shareholders have the right to participate in the profitability of the company and they can also actively participate in the decision making process. The concept of ordinary share can be better understood by applying it to the case study on Massmart Holding Limited..

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