Cashbuild Build it and they will come
Look, normally we wouldn’t do this, but slow news week on the retail front, and Cashbuild does compete with both SPAR and Massmart, so here goes. Those Cashbuild results you never even knew you were curious about: Group revenue up 13% to R8.7bn in the year through June, with operating profit up an even-more-giddy 33% to R612m. Cashbuild is Southern Africa’s biggest retailer of building materials and the like, with 284 stores in SA, Namibia, Lesotho, Botswana, Swaziland, and Malawi – a number bolstered of late with the addition of 10 DIY stores and the purchase of 42 P&L hardware shops. Over half of Cashbuild’s sales come from townships and rural areas, where, apparently, people are beginning to enjoy the benefits of plastic – about 45% of sales are now on debit or credit cards, a fact that Cashbuild attribute to the efforts of Capitec to get people to make the move from cash.
Comment: Cashbuild’s resilience in the retail downturn can be attributed to the fact that the building activity for which they provide the wherewithal is substantially paid for by social grants.