Massmart Details How It Aims To Expand Makro And Builder’s
Massmart Details How It Aims To Expand Makro And Builder’s. In a statement Massmart highlighted how it aims to expand Makro and Builder’s, it said on its website, “We have intensified the pivot toward growth in our core General Merchandise, Home Improvement and Wholesale Food & Liquor offerings. This includes investment in e-commerce and increased capital allocation to expand and remodel the store footprint of our high return Makro and Builder’s formats.”
Massmart is the number one general merchandise retailer in South Africa and the second largest retail website traffic generator, in which context we achieved a 56% increase in e-commerce Gross Merchandise Value (GMV). The company believes that with this track record together with its buying scale and national store footprint, supported by a sophisticated Distribution Centre network, presents a clear opportunity to become the Business to Business & Consumer (B2B+C) e-commerce market leader.
“Altogether 72% of Massmart’s 2022 Capex budget has been allocated to investment in e-commerce and, Builders and Makro new store development and remodelling projects.” The company said on its website. Toward this end, the company has managed to secure access to Walmart’s global e-commerce technology stack and approved a three-year e-commerce investment plan that is heavily weighted towards creating an intuitive mobile-first online shopping experience. It’s objective is to achieve 50% to 65% growth each year for five years.
According to Massmart, In the next five years, untapped market opportunities will result in a 50% increase in the Builder’s store footprint in South Africa, generating potential sales of from R1.4 billion to R2.4 billion. Whilst Makro will see a 25% increase in its store network, generating potential sales of from R5 billion to R7 billion. Existing stores in both formats will also benefit from focused store remodelling programmes.
