With coronavirus-related trade restrictions being eased, South African retail holding company Massmart experienced an 8% rise in sales during the 19 weeks ended May 9. The company, which is partly owned by U.S. retail giant Walmart, generated 30.5 billion rand ($2.17 billion) in sales, the equivalent of an 8.54% increase in in-store sales.
Massmart confirmed that during the same period in 2020, the South African company’s sales were significantly lower. This is largely due to the strict lockdown restrictions that were imposed across the nation at that time. This period came just before South Africa experienced its first major wave of coronavirus cases nationwide.
While Massmart did confirm that the continued easing of lockdown restrictions has enabled the company to gradually increase its revenue generation, it did mention that the continued ban on liquor trading, a restriction that has been enforced since January, has greatly curbed its sales’ potential, particularly over the Easter weekend.
The company revealed that its Makro and Cash & Carry stores were most significantly hit by the liquor ban, with the lost sales resulting from the ban on liquor estimated to be over 770 million rand.
Founded in 1990, Massmart is the second-largest distributor of consumer goods in Africa. It owns several local South African brands, including Builder’s Warehouse, Game, and Makro.
