South African retailer Massmart, which owns brands such as Game and Makro said it lost out on R2.3 billion in sales of alcohol during April and May when the sale of liquor was banned under level 5 and 4 restrictions.
The group in a trading update said total sales for the 23 weeks, ended on 7 June 2020, amounted to R34.8 billion, which is 10.3% lower than the prior year.
“Massmart was unable to trade in the majority of general merchandise categories, home improvement and liquor products for most of the month of April, which had a significant impact on total sales during that month. Moving to level 4 lockdown from the beginning of May enabled Massmart to gradually start trading in more product categories,” the company said.
“Most notably, our Builders stores throughout the country were able to recommence sales to the general public. However, restrictions on the sale of liquor and tobacco products remained in place throughout the month of May. Missed liquor sales for the months of April and May are estimated to be approximately R2.3 billion based on prior-year sales,” added Massmart.
The company said it expects its half-year loss to widen at least 50% because of the impact of COVID-19. Massmart’s half-year results will be published on 27 August.
The group has also secured a R4 billion loan from parent company, Walmart “to provide additional headroom in the event of unforeseen circumstances as we navigate through the lockdown period and beyond.”
