Massmart is consulting with unions about store closures and job cuts, but Makro will remain unaffected.
In its announcement, the company said its plan is to close a total of 34 physical stores and retrench 1,440 employees in an effort to improve its finances.
“The Massmart Group has recently conducted a store optimisation project that highlighted a number of underperforming stores in its portfolio,” said Massmart.
“Consequent to this project the Massmart Group seeks to advise shareholders that Massmart has commenced a potential store closure consultation process in terms of section 189 and section 189A of the Labour Relations Act.”
MyBroadband asked Makro how these job cuts would impact it, but the retailer said it would remain unaffected.
“Please note that Makro is not affected by the announcement,” Makro said.
RIP Dion Wired
Makro may have escaped the cutbacks unscathed, but Masscash is set to lose 11 stores, and Massmart plans to shut down the Dion Wired franchise.
The company plans to shutter all 23 Dion Wired stores in South Africa, removing the hi-tech retailer’s local presence entirely.
According to Massmart’s website, its Masscash division consists of the following stores:
- Jumbo Wholesale
- Jumbo Shield
- Rhino Cash and Carry
- Cambridge Food
Massmart’s new chief executive, Mitchell Slape, arrived at the company in September last year with a mission to turn around its financial position after it reported a loss in the first half of 2019.
Massmart operates a range of well-known retailers in South Africa in addition to the companies listed above.
These include the “Builders” stores, consisting of the Warehouse, Express, Trade Depot, and Superstore outlets.
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