Massmart Yes it’s pink. What are you going to do about it?
Cheerfully-liveried Cambridge Meats, with its distinctive turquoise, yellow and yes, pink vans, is spearheading Massmart’s otherwise deadly serious charge into retail. The thinking is that food retailing is a resilient sector and the lower end is where the growth is, so what the heck, let’s open or buy 100 in the next five years. The Masscash division, where Cambridge is to be found, currently owns 22 retail stores under five regional brands, and the idea is that they’ll all be rebranded Cambridge by Christmas. Together, they’re worth a handsome and growing R2.5billion for Massmart every year. The typical Cambridge gives 50% of floor space to dry goods and 50% to perishables, which comprise around 30% in competitor stores. In the 52 weeks to June, by the way, Massmart lifted revenue by a handsome 10.1% to R47.5billions, with young Masscash outpacing Dad at a sprightly 14.5%.
Comment: Interesting times for the many independents in the sector as the Massmart boys ride into town.