Roundup Building momentum
Shoprite continue to lean on the tried and tested strategy of value, to keep customers loyal in these troubled times, sometimes in very specific terms: the business has either subsidized or frozen prices on 6,793 tons of sugar, 8.3million litres of cooking oil, 3.4million litres of milk, 16,118 tons of maize, 9,555 tons of rice and 144.1million loaves of bread since April 2016. This among a far-reaching range of measures to keep prices low and offer value in the face of the VAT increase and the seemingly endless rise in the fuel price. Doing right by the planet, SPAR and Pick n Pay both went all-in on the recent International Plastic Bag Free Day initiative. And Massmart, driven by a boom in the construction sector in those countries and poor availability of building supplies, has plans to open six new Builders Warehouse stores in Kenya, Mozambique, Swaziland and Zambia, over the next two years. Builders, you will remember from last week, is one of the high spots in Massmart’s business at the moment, and a reliable contributor to both profitability and growth.
Comment: Good work all round, from a sector doing its bit to keep the dear old SA economy afloat.