Johannesburg – Massmart, who owns brands such as Game and Makro, says it is cutting capital expenditure and participating in talks with landlords over rental relief as it seeks to preserve cash.
The group said on Monday total sales for the 19 weeks ended May 10 fell 11.9% to R28.2bn.
The group also said that it had met all payment obligations throughout the lockdown and has continued to pay employee salaries in full, while the outlook for SA’s trading environment remains highly uncertain.
Massmart will be “sensibly” reducing capital expenditure, and negotiating and taking part in the rental relief package from the Property Industry Group, the retailer said.
Three of South Africa’s major representative bodies for real estate have been engaging with tenants on relief packages, for example, rent discounts whereby rent will be waived partially or completely, or deferred.