Massmart, subject to a full buyout offer from parent Walmart Inc, has begun shutting unprofitable and unviable Game stores across South Africa.
In December 2021, it announced that it had identified an “initial” “15 stores that will be subject to a possible sale”. This followed the re-lay of all 114 Game stores in the country which allowed the retailer to compare sales trends and potential.
Eight stores are now in the process of being shut. It has begun aggressive markdowns on all stock at these stores, listed on its website.
The stores being closed include Bel Air (Northriding), Greenstone and Mall of the South in Johannesburg, the Cape Town CBD one, the Ulundi and Westwood Mall outlets in KwaZulu-Natal, the Gilwell store in East London, and Game in Hazyview.
With very limited exclusions, discounts of up to 40% are being offered on all stock, with the closing down sales beginning at the end of last month already. A letter to customers regarding limits on other discounts and promotions is dated 24 August.
Clothing, camping equipment, laptops/computers, furniture and toys are all marked down by 20%, hand tools, hardware, air conditioning and fans by 25%, while heaters, electric blankets and stationery are less 40%. Currently, the minimum discount storewide is 10%.
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Massmart has initiated Section 189 consultations with the 700 affected employees at the stores set for closure three months ago.
“We are still in discussions with staff to finalise closure dates,” Massmart said.
“As is always the case, we will apply our best efforts to identify opportunities for redeployment of the affected staff members within the broader Massmart Group.”
Source: Moneyweb