Game Levelling the playing field
Well the punters certainly enjoyed Massmart’s impressive 15.8% increase in HEPS last week, rewarding the Men in Black with a 16% jump in the share price. This after lean years totalling almost a decade, during much of which the retailer has battled to bed down the Wakro deal and figure out the way forward in Africa. Things are looking rosier, now, to be sure, although nothing is set in stone. A recent development causing the analysts to admit muted notes of approval is the appointment of the vastly-experienced Albert Voogd, fresh from Ahold in the Netherlands, as CEO of Game. Game, which is also setting its hopes upon its new SAP POS and ERP system, which will provide a better view of profitability by product line, is key to the Massmart turnaround: it’s a popular brand north of our borders, and contains Massmart’s hopes of an expansion into traditional food retail.
Comment: Our industry is becoming positively ripe with hired guns from Europe. It’s working for Clicks, Pick n Pay and Woolies, why not Massmart too?