Sales growth slowed during the first half of the year amid a downturn in consumer spending, Massmart Holdings, South Africa’s biggest food and goods wholesaler, said yesterday.
The company, in which US-based Walmart has a controlling stake, said same-store sales climbed 5.5 percent in the 26 weeks to June 23, compared with a 7.3 percent rise in the half year to December 23.
Inflation for the period was estimated at 2.9 percent.
Total sales advanced 8.9 percent to R32.3 billion.
The company will release full financial results for the period on August 22.
Among Massmart’s brands are Makro and do-it-yourself specialist Builders Warehouse.
South African retail sales growth slowed to 1.9 percent in April as slower economic growth and rising unemployment curbed consumer spending.
The unemployment rate climbed to 25.2 percent in the first quarter from 24.9 percent in the previous three months, as the number of working age people grew and the retail, finance and construction industries cut jobs.
In the first quarter the economy grew at its slowest pace since 2009.
Massmart shares rose 1 percent to close at R173.35 on the JSE yesterday. – Bloomberg