Source: Trade Tatler
Massmart has approached Walmart to request a R4-billion inter-company loan.
This as it announced that sales for the 23-week period through 7 June totalled R34.8-billion, -10.3% down from last year, with like-store sales down a similar amount, and sales in South Africa down -11.5%.
The loan, says Massmart, will “provide additional headroom in the event of unforeseen circumstances as we navigate through the lockdown period and beyond.”
The cash will help Massmart through a period of presumably temporary illiquidity, caused by the hit it has taken in sales during the pandemic. This hit included R2.3-billion in liquor sales lost during the lockdown in April and May.
The company projects that profits for the six months through June will be -50% down from the same period last year.