Massmart shares fall on the back of weak earnings

Source: Trade Tatler

A trading statement from Massmart last week resulted in a corresponding -20% drop in the share price.
Sales for the 52 weeks through December grew just +2.9%, or +1.2% on a like-store basis, with sales growth slowing in all divisions except Massdiscounters (Game and DionWired) over November and December, despite satisfactory Black Friday sales.
The problems are three-fold:

1. Part of the problem is of course the state of our economy and its shaky 1% growth
2.  Neglect on the part of the new parent company has played a role: Walmart has had much bigger fish to fry in India, China and online than the African market
3. Walmart’s requirements in terms of organisational structure, processes and product standards have shackled Massmart’s ability to operate lighter on its feet, making competing against the independents difficult – from the types of products on shelf through to the freedom to trade on the shop floor.