massmart reviewed results presentation
TRANSCRIPT
MassmartReviewed Results Presentationfor the 52 weeks ended 27 December 2020
08 March 2021
Presenting today
2
Chief Executive Officer Chief Financial Officer
Mohammed Abdool-Samad
Mitchell Slape
VP: Group eCommerce
Sylvester John
01 Executive summary
02 Financials and Covid-19 impact
03 Strategy and turnaround plan update
04 Outlook
05 Additional information
Agenda
3
Executive summary
4
Resilience in a
challenging
environment
• R6.1bn sales impact due
to Covid-19 restrictions
• Adapted to changing
customer behavior
• Recovered and
accelerated performance
through H2
Delivered enhanced
gross margins
• Up 147bps in 2020:
– Inter-group collaboration
– Every day low price
• Maintained price
positioning
Excellent
expense control
• Total expenses down
0.3% with comparable
store expenses down
1.3% in 2020
• Poised to sustain leverage
going forward
Cash flow/
debt management
• Improved free cash flow by
R560 million
• Stabilised the balance
sheet
Strategy
• Strong turnaround
execution
• Focus on Growth
1 2 3 4 5
Financials and Covid-19 impactMohammed Abdool-Samad, Group CFO
X
Financial summary – reported
6
Strong margin and expense momentum despite trading environment
SALES
2019: R93.7 billion
7.7%
52-week basis – including Covid-19 impact
R86.5 billion
GROSS PROFIT MARGIN
2019: 18.9%
147bps
20.4%
HEADLINE LOSS REDUCTION
SG&A REDUCTION
2019: R16.8 billion
0.3%
R16.7 billion
2019: (R1.2 billion)*
19.7%
(R0.9 billion)Includes IFRS 16
*Restated
TRADING PROFIT BEFORE
INTEREST AND TAX
5.5%
R1,172.7 million
(excl. reorganisation,
restructure and impairment)
2019: R1,111.2 million
A tale of two halves
Including IFRS 16
• Sales impacted by trading
restrictions in H1
• Resilience in challenging
sales environment
• Focus on EDLP continues
yielding improved margin
• Shift from yard to retail sales
in Builders enhanced margin
• Normal liquor trading only
33% of the year
• Expenses sustainably
curtailed throughout the year
Stronger H2 performance relative to H1 and H2 (2019)
Rm H1 2020 H2 2020 H2 2019 H2 vs H2 VAR
Sales 39,599 46,886 49,828 (6%)
Margin 7,972 9,656 9,284 4%
Net expenses (8,346) (8,386) (8,595) (2%)
Trading profit
before interest &
taxation (267) 1,439 792 82%
Free cash flow (3,745) 6,034 5,708 6%
Margin and trading profit impacted by trading restrictions
8Includes IFRS 16
Restrictions drove lost sales of R6.1 billion
Rm
Estimated lost margin @19.5% 1,188
Increased direct costs 132
Relief/benefits received (288)
Increased indirect costs (31)
Estimated impact on trading profit* 1,001
*Impact of trading profit estimated based on lost
sales at the margin achieved in the same period in
2019, net of costs incurred and benefits received.
Other• Additional costs incurred
relating to operating
regulations
• Rent relief of R102 million
• Temporary employee
cost relief of R186 million
Liquor trading • 40% of the year -
Complete ban of trade
• 27% of the year -
Restricted trade
• 33% of the year -
Normal trading hours
and conditions
Foot traffic• Super and Major Regional
malls most impacted
declining by 17% and 14%
respectively
Estimated
liquor
lost sales
R3.4bn
Sales by geography and categorySales performance across the business was impacted by the trading restrictions
9
GROUP SALES
R86.5bni7.7%
SA SALES REST OF AFRICA SALES
i 7.9%90.8%
i 5.4%9.2%
DURABLES
i7.2%43%*
LIQUOR
i22.3%15%*
DURABLES
i4.6%39%*
LIQUOR
i23.1%13%*
DURABLES
i7.0%43%*
LIQUOR
i22.4%15%*
7.5% decline
COMP SALES
FOOD
i3.1%42%*
FOOD
i3.3%42%*
FOOD
i1.5%48%*
*FY19 contribution to total sales to account for normal trading conditions
7.6% decline
COMP SALES
6.6% decline
COMP SALES
6.6% decline
CONSTANT
CURRENCY
Excellent expense control
10
Total Group expenses declined by 0.3%, comparable expenses at 1.3%
Employment Costs
• Attrition and
recruitment freezes
• TERS relief during
lockdown (R186m):
associates paid on
time and in full
• Delayed
management salary
increase
Depreciation
and amortisation
• Closure of DionWired
stores
• Reduced capital
investments - cash
preservation and
construction industry
impact
Occupancy Costs
• Landlord support:
rental relief received
during lockdown
(R102m)
• Reduced utility costs:
improved monitoring
and energy efficiencies
• Rentals renegotiated –
Full impact in 2021
Other Operating Costs
• Travel
• Conferences and
training
• Reduced marketing
spend
0.9% decline
9.7% decline
One-off items
• IT Support costs
• Increased Covid-
19 related costs:
deep cleaning
and sanitising
costs (R132m)
4.1% decline
1.2% decline i i i i
Includes IFRS 16
Performance – Massmart Retail
11
Strengthened collaboration across the banners
R16.7bnSALES
i15.5%
27.4%GP
h230bpsHY: 25.5%
(R532.5m)PBIT*
i36.2%2019: (R391.0m)
• Covid related lost sales
~R0.9bn
• Reduced footfall –
Shopping malls
• Grew online sales by
77.5%
• Margin improvement:
Shift to EDLP, better
management of
promotional mix
• Strong expense control
(-3.8%)
• Successful rental
renegotiations
• Covid related lost sales
~R1.0bn (closed month of
April)
• Grew online sales by 111.0%
• Robust margins: increased
retail mix with promotional
discipline; construction sector
still under pressure due to
restrictions
• Strong vendor partnerships:
vendors paid on time and in
full; deliveries prioritised by
suppliers
• Good expense controls
(expenses up 0.2%)
R13.9bnSALES
i2.1%
35.9%GP
h220bpsHY: 33.3%
R1 032.6mPBIT*
h21.7%2019: R848.5m
• Covid related lost
sales ~R0.8bn
• Reduced footfall –
taxi ranks
• Store closures &
liquor ban/trading
hours. Liquor
participation ~10%
• Margin
improvement:
category mix and
trading disciplines
• Good expense
control (expenses up
0.9%)
R8.3bnSALES
i13.5%
19.1%GP
h190bpsHY: 17.3%
(R363.5m)PBIT*
i17.2%2019: (R310.2m)
Includes IFRS 16 * Includes HO allocations
Performance – Massmart Wholesale
12
Significantly improved Cash & Carry performance highlights power of the merger
R27.2bnSALES
i7.3%
18.2%GP
h40bpsHY: 18.2%
R864.1mPBIT*
i16.8%
2019: R1 039.1m
R20.4bnSALES
i1.8%
11.7%GP
h120bpsHY: 10.9%
R172.0mPBIT*
h328.7%
2019: (R75.2m)
• Covid related lost sales ~R3.4bn
• Only 17 weeks (33%) of liquor trading
during the year without any restrictions
(Liquor participation ~25% under normal
trading conditions)
• Enhanced margin with improved price gap
• Single Wholesale group synergies: serving
customers, reduced transport costs and
better deals with vendors
• Makro grew online sales by 40.2%;
leveraged partnership with OneCart
• Strong expense controls (-1.9% for Makro
and -0.1% for Cash & Carry)
Includes IFRS 16 * Includes HO allocations
Accelerating our eCommerce businessMomentum continued throughout the year
Online sales
1.8% sales participation
(2019: 1.1%)
h58.6%
Online traffic
Click-and-collect
h65.2%
h69.5%
Working capital
• Stock levels flat compared
to prior year
• Substantial progress in
clearing aged stock
• Strong vendor relationships
resulted in high in-stocks
• Suppliers paid on time and
in full during lockdown:
enhanced relationships
• Renegotiated extended
payment terms with
suppliers on the back of
partnership approach
Inventory
days
63
• Hospitality and construction
industry debtors under
pressure: increased
provisions
• Collection initiatives improved
ageing of debtor balances
Creditor
days
73
Debtor
days
8
2020
2019
R11.9bn
R11.9bn
R2.2bn
R2.3bn
R15.8bn
R16.1bn
2020
2019
2020
2019
14
days
h6
days
h6
days
0
Working capital tightly managed to ensure high in-stocks in the midst of Covid induced trading disruptions
Impairment summary
15
Impairments Rationale
• Covid-19 impact on
outlook not supporting
Goodwill
• Group's strategic shift
away from its fresh and
frozen offerings
•Consolidation of the
Group's various head
office locations
Once-off impairment adjustments
Rm Dec 2020
Cambridge Goodwill 348.4
Fruitspot Goodwill 175.0
Store Assets 170.2
Manufacturing Assets 46.4
Head Office Consolidation 43.9
Other Assets 14.8
798.7
Cash flow and debt management
16
Rm Dec 2020 Dec 2019 MOVEMENT
EBITDA, before non-trading items 4,223.8 4,183.4 40.4
Net debt* 2,574.8 2,422.2 152.6
Total equity 2,951.5 4,800.8 (1,849.3)
Gearing ratio* 0.87 0.50 0.37
Free cash flow 2,288.8 1,728.7 560.1
Foreign exchange loss (381.1) (143.0) (238.1)
Cash interest to financiers* 556.0 659.0 (103.0)
Cash flow initiatives
• Focused expense management
and disciplined capex deferrals
• Paid suppliers on time and in full:
Enhanced relationships ensuring
no disruption in supply
• Continued to pay salaries and
benefits on time and in full
• Rental relief & TERS benefit
• Renegotiation of vendor payment
terms to preserve cash while
taking care of most vulnerable
smaller suppliers
• Deferral of management salary
increases
* Excludes lease liabilities
Strong cash flow underpinned by healthy margins and disciplined expense management
Strengthened balance sheet position
17
• Secured R4 billion
Walmart loan
• Support from local
and international
banks
• All suppliers and
associates paid on
time and in full
• Despite sales loss as
a result of Covid-19,
Net debt increased by
only R152.6 million
WEEK 10 WEEK 13 WEEK 18 WEEK 22 WEEK 28 WEEK 34 WEEK 39 WEEK 41 WEEK 51 DEC 28 >
First
confirmed
case in SA
Level 5 Lockdown,
Non-essentials, General
Merch., Home Improvement,
Liquor & tobacco sales
prohibited ~56% categories
Level 4 Lockdown;
Builders reopens
Level 3 Lockdown,
Liquor allowed,
Tobacco sales
prohibited
Liquor Ban
reintroduced
Level 2 Lockdown,
Liquor sales
allowed with
restricted trading
hours
Level 1 Lockdown,
Liquor sales
allowed with
restricted trading
hours
Liquor sales
allowed during all
licenced hours
Liquor sales
allowed with
restricted trading
hours
Liquor ban
reintroduced
Key events
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Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Net Debt 2020 Net Debt 2019 Average Annual Net Debt Facilities
Improved liquidity driven by improved cash generation, strong banking relationships and Walmart support
RUSH
BUYING
Capital expenditure
18
Capex responsibly managed to preserve cash flow
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
R 0
R 200
R 400
R 600
R 800
R 1 000
R 1 200
R 1 400
R 1 600
R 1 800
R 2 000
Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
Ca
pe
x a
s a
% o
f sa
les
R1,775.0m R1,806.7m
R1,606.0m
R1,371.8m
R1,034.3m
2,0% 1,9%
1,8%
1,5%
1,2%
Remodel cycle significantly
disrupted by construction
industry lockdown
Investment to maintain operations Property acquisitionsInvestment to expand operations Business acquired
Key takeaways
19
• Enhanced margins and excellent
cost control
• Improved HEPS performance
• Stabilised the balance sheet and
reduced interest bill
• Foundations in place to accelerate
strategic focus areas, including
driving topline
Strategy and turnaround plan updateMitch, Group CEO
Stabilise
Focus
Invest
1
2
3
Through strong execution
of our turnaround plan
Divest non-core assets to drive
sustainable profitable growth
Accelerated growth in
eCommerce, key categories &
geographies
Our Journey
21
To become the healthiest and strongest retailer in Africa with the best long-term prospects
Group Operating Model
Game Reset
Wholesale Integration
Supply Chain Optimisation
Portfolio Optimisation
Cost Reset
Stabilise the base
22
Turnaround efforts are stabilising the business and driving renewed financial health, as reflected in our performance
Established an efficient
operating model
Customer-centric
organisation with centralised
support functions
Repositioning our
portfolio for growth
Continued portfolio
optimisation
Achieving enhanced
margins
Improved margins through
merchandising discipline
and leveraging of scale
Resetting the
cost base
Revised cost base
through Smart Spend
programme
1
3
4
5
2
6
SG&A DECLINE
i 0.3%
GROSS PROFIT MARGIN
h 147bps
TRADING PROFIT BEFORE
INTEREST AND TAX
h 5.5%
(excl. reorganisation,
restructure and impairment)
FREE CASH FLOW
IMPROVEMENT
h 32.4%
Continued Game revitalisation
23
The Game Reset programme is gaining significant traction across key initiatives
• Achieved overall 230bps GP
margin uplift through
optimizing margin and mix and
extending every day low price
• Accelerated exit of Fresh
(51 stores) and introduction
of Clothing (60 stores), with
clothing showing promising
sales growth and strong
margins (complete by Q3)
• Successes include market-
leading growth in target
categories (example
Large/Premium TVs)
• Rolled out Happy to Help
and launching Centres of
Excellence stores driving
improved customer
experience
• Launched 3 Game
Reimagined store prototypes
• Launched 40 stores on the
UberEats and 12 stores on
the OneCart on-demand
platforms
• Excellent expense control,
achieving negative SG&A
growth of -3.8% in 2020
• Savings driven from multiple
expense lines including
employment costs (R102m)
and rent (R44m)
Strengthened margin
performance
Elevated customer
experience
Improved cost
management
Looking forward
24
In FY21, we will harvest maximum value from our Turnaround initiatives
Group Operating Model
• Complete final implementation in
Q1 – 2 business units supported
by Centres of Excellence
• Finalise Finance support
transition to Genpact in Q1
Portfolio Optimisation
• Complete divestiture of non-
core/non-strategic store assets
Game Reset
• Roll out Game store re-imagined
• Accelerate and complete roll-out
of successful apparel
introduction
• Drive sales performance with
sustained margin discipline
Wholesale Integration
• Unify IT systems and enhance
our eCommerce offering
• Pilot standalone “Powered by
Makro” liquor store format
Supply Chain Optimisation
• Go live with 2 state of the art DCs
• Achieve a “one best way”
approach, leveraging Walmart
supply chain expertise
• Centralise volume through our
DC network to >40%
Cost Reset
• Contain expense growth below
sales growth through execution
against our R1.9 billion expense
reduction ambition
1 2 3
4 5 6
Stabilise
Focus
Invest
1
2
3
Our journey beyond turnaround
25
We are now shifting to refining our portfolio focus further and growing the business
Through strong execution
of our turnaround plan
Divest non-core assets to drive
sustainable profitable growth
Accelerated growth in
eCommerce, key categories &
geographies
Our future strategic positioning
26
Massmart will become a stronger business that leverages core strengths
General
Merchandise &
DIY Market Leader
Wholesale Food
& Liquor
Powerhouse
Best-in-class eCommerce“Powered by Walmart”
Focused approach
27
Two immediate decisions will further drive core market focus
Not core to our business;
no clear path to market leadership,
therefore…
Mixed performance and
management complexity,
therefore…
REST OF
AFRICA
STANDALONE
FOOD RETAIL
…appointed Barclays to facilitate
the sale of our Massfresh and
Cambridge/Rhino Food assets
…extend detailed portfolio
review to include stores
outside SADC
2
1
Our investment areas
28
We will invest in areas of market strength to accelerate our growth
Grow our DIY Footprint
• Grow Builders’ store footprint
• Maximise category offering
across DIY and Trade
Unify and differentiate
our Wholesale business
• Leverage integration synergies
and wholesale scale
• Elevated customer proposition
Revitalise General
Merchandise Leadership
• Drive Game Reset
• Innovate/drive inter-company
leverage in category mix
across Makro and Game
Accelerate eCommerce
• Drive growth with unique offer across B2B and B2C
customer channels
• Leverage our extensive store and warehouse
network for pick-up and delivery efficiency
• Expand our online range to better serve our customers
• Pursue strategic partnerships to build capability, attract
new customers and enhance value proposition
Accelerating eCommerce
29
We have commenced the foundational work required to propel our eCommerce presence
A significant eCommerce presence…
Website Enhancements(Makro, Builders)
Store Fulfillment(picking system, pickup strategy,
omnichannel execution)
Warehouse Ship-to-Home(Cape Town and Johannesburg)
Order Management System
Strengthening Foundational Competencies
Enhancing Last Mile Delivery Capability
Driving Mobile Acceleration
Online GMV
2020 GMV across combined Massmart banners
R1.1bn
Online traffic
Customer growth
#2Share of retail website traffic in South Africa
h72.9%2020 unique customer growth across Massmart banners
Omnichannel valueTotal sales from Omnichannel customers vs. online only
2.65x1.42x average sales of Omni customer vs. in-store only
Fully optimise WumDrop Launched logistics
platform powered
by FarEye
Expanded
collaboration
with OneCart
Launching of Vodapay Super App
…which is now poised to rapidly grow
Driving mobile acceleration
30
Massmart and Vodacom partner to accelerate the commerce flywheel of the Vodapay Super App
Vodacom partners
with China's Alipay
to create 'super app'
in South Africa…
…shop online, pay
bills, send money to
family, stream music,
follow news (20/7/20)
What is a Super App? Massmart as Retail Cornerstone in Super App
“Many apps within an umbrella
app. It’s an operating system that
unbundles the tyranny of apps.
It’s the portal to the Internet for
a mobile-first generation [and
designed to maximize time spent]”
–Sidu Ponnappa, Gojek
Benefits:
• Convenient – single sign-on,
payment binding, key
features
• Intuitive – organic product
design and evolution
• Networked – friends and
family connected
Launchpad for Massmart’s Mobile Strategy
• Customer aggregation prospect
(44m starting base; 24m smart devices)
• Zero-rated data costs to all users
• Brand reach and conversion of younger
incremental customers
• Incremental sales channel for new product
campaign (digital) events for Massmart brands
Key takeaways
31
• We are stabilising the business through
our turnaround programme
• We have made two key decisions that will
enable a focused approach to our
business:
– Exit Cambridge and Massfresh
– Review of ROA stores
• We are investing to accelerate growth:
– General Merchandise and DIY
– Wholesale
– eCommerce
OutlookMitch, Group CEO
Outlook
33
• The turnaround plan is delivering
• Currently able to trade all categories,
future trading restrictions uncertain
• Generating Free Cash Flow a priority to
further strengthen the balance sheet
• Focusing on the core and drive growth
• Influenced by evolving macroeconomic
green shoots
Any reference to future financial performance included in this document has not been reviewed or reported on by the Group’s external
auditors. The auditor’s report does not necessarily report on all the information contained in this announcement/financial results.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement they should
obtain a copy of the auditor’s report together with the accompanying financial information from the issuer’s registered office.
Q&A
Additional informationCondensed Consolidated Income
Statement
Tax rate reconciliation
Cash flow statement
Capex per category
Store portfolio
Number of shares
Turnaround progress detail
Extract from Reviewed
Consolidated Results for the
period ended 27 December 2020
36
Condensed
consolidated
income
statement
Tax rate reconciliation
37
% Tax rate reconciliation
DEC 2020
(REVIEWED)
DEC 2019
(AUDITED)
Standard tax rate 28.0 28.0
Disallowed expenses (14.1) (19.9)
Assessed loss not utilised (10.1) (27.6)
Other 2.7 0.6
Group tax rate 6.5 (18.9)
• Tax expense on profit
making entities
• Limited recognition of
certain deferred tax
assets
• Non-deductible goodwill
impairment
Includes IFRS 16
Cash flow statement
38
RM
DEC 2020
(REVIEWED)
DEC 2019
(AUDITED)
Operating cash before working capital movements 4,559.5 4,296.8
Working capital movements (187.9) (82.0)
Cash generated in operations 4,371.6 4,214.8
Net interest and tax paid (1,812.9) (1,905.8)
Net investment to maintain operations (269.9) (580.3)
Free cash flow 2,288.8 1,728.7
Dividends paid (39.9) (162.4)
Dividends received - 20.0
Investment in subsidiaries (0.2) -
Investment to expand operations and other net investing activities (735.3) (731.0)
Cash flow before financing activities 1,513.4 855.3
Capex per categoryTotal capex 1.2% of total sales (2019: 1.5%)
39
RM
DEC 2020
(REVIEWED)
DEC 2019
(AUDITED)
PERCENTAGE
CHANGE
Land and buildings/leasehold improvements 356.1 177.2 101.0
Vehicles 0.2 0.7 (71.4)
Fixtures, fittings, plant and equipment 141.9 266.8 (46.8)
IT investment 266.0 346.8 (23,3)
Investment to expand operations 764.2 791.5 (3.4)
Land and buildings/leasehold improvements 64.9 39.3 65.1
Vehicles 2.1 45.4 (95.4)
Fixtures, fittings, plant and equipment 144.5 153.9 (6.1)
IT investment 58.4 341.7 (82.9)
Investment to maintain operations 269.9 580.3 (53.5)
Total 1,034.1 1,371.8 (24.6)
Capital investment
Land and buildings/leasehold improvements
Vehicles
Fixtures, fittings, plant and equipment
IT investment
31%
41%
0%28%
Store portfolio
40
Total
-20Net closed
Game DionWired BuildersCambridge
and RhinoMakro Cash & Carry
149 0 120 63 22 69Down from 150
in Dec 2019
Down from 23
in Dec 2019
Up from 118
in Dec 2019
Up from 61 in
Dec 2019
22 in
Dec 2019
69 in
Dec 2019
-23 +2in South Africa +2 Builders Warehouse
+1 in South Africa
+1 in Kenya
-1in South Africa
+2in South Africa
+1 Builders Express
in South Africa
-1 Builders Superstore
in South Africa
Down from 443
in Dec 2019
Total
423
Number of shares
41
‘000
At Dec 2019 219,138.8
Shares issued –
At Dec 2020 219,138.8
Weighted-average at Dec 2020 (net of treasury shares) 216,580.3
Diluted weighted average at Dec 2020 222,666.0
• Delivered SG&A savings, on course to achieve our R1,9bn three-year target
• Initiated data-driven supplier negotiations
• Customer-focused business units supported by centres of excellence
• Outsourced IT support and financial transaction processing
• Closed Dion Wired and sold 8 Masscash stores
• Announced the divestiture of a further 14 non-core Cash & Carry Stores
• Enhanced merchandising disciplines yielding greatly improved margins
• Instilled cost discipline and contained expense growth
• Introduced apparel in 60 stores, and exited Fresh & Frozen in 51 stores
• Created a single team leveraging scale to reduce costs and enhance customers value
• Integrated Shield into Massmart Wholesale
• Established an integrated Group Supply Chain, while increasing throughput and
reducing unfunded network participation
• Initiated the DC consolidation process
Stabilise
42
Our Turnaround execution is stabilising the business
Group Operating Model
Game Reset
Wholesale Integration
Supply Chain Optimisation
Portfolio Optimisation
Cost Reset
Progress Highlights Value
1
3
4
5
2
6 Unlocked R600m in SG&A savings
Enabling value delivery through a more
efficient organisation & centralised teams
Delivering R160m in annualised PBIT
Achieved a 230bps GP margin uplift
Restored everyday CnC margins
Delivered 31bps of the 1% COGS
reduction opportunity
Turnaround milestones We have seen significant momentum in FY20 and achieved key turnaround milestones
• Established customer-focused two business units
• Reorganised the leadership team
• Established IT and Supply COEs
• Initiated Dion Wired closure and sale of 11
Masscash stores
• Exiting Fresh and re-introducing clothing in Game
• Outsourced IT applications support
and development to Walmart IDC
• Went live with S/4 Hana in Game
• Validated R1,9bn in SG&A savings
• Implemented data driven supplier
negotiations, targeting 7 categories
accounting for ~R22bn in direct spend
• Finalised centralisation of support
functions
• Appointed Chief Supply Chain Officer
(Walmart expert)
• Initiated Game store S189 rationalisation
• Launched Game Store of the Future
prototype
• Appointed Head of eCommerce
(Walmart expert)
• Consolidated Retail teams into single head
office location
• Initiated closure of two DCs, aligned to
shift from 15 to 7 DC model
• Conducted feasibility study to outsource
financial transaction processing activities
• Unlocked R600m in SG&A savings
43
Q1 Q2 Q3 Q4