· Massmart, one among South Africa’s biggest retailers, has announced possible store closures in 2020. This move is likely to affect more than 1400 employees
· The enterprise may close 34 stores and in this regard it has started consultations with its employees, which it is mandated to have under section 189 of the Labor Relations Act.
Massmart, one among South Africa’s biggest retailers, has announced possible store closures in 2020. This move is likely to affect more than 1400 employees. Earlier, another firm – Edcon- country’s largest clothing retailer, announced the closure of its Edgars store in Rosebank Mall. The reason for both closures is under performance.
Massmart, owns Game, DionWired and Makro among other brands, which sell high -ended products of various hues and prices. . The enterprise may close 34 stores and in this regard it has started consultations with its employees, which it is mandated to have under section 189 of the Labor Relations Act. This mandated route has to be followed when an enterprises retrench staff. Store closures are part of a restructuring plan being carried out by the new CEO Mitchell Slape, who took over the reins in September last year.
The retailer is on a closure spree and already closed two outlets in the first half of 2019 citing low consumer demand.. Customers are also putting off or delaying purchases particularly high price-ticket electronic items as the S economy stagnated last year. Supply disruptions are also causing under performance of the stores. The stock supply challenges are other factors that make the stores to underperform.
