Review the following case study about Massmart, then answer the questions that follow. Reviewed Interim Results for the 26 weeks ended 26 June 2022 Massmart is an African retail group, with total Group sales of R41.3 billion for the 26 weeks ended 26 June 2022. Through our widely recognised and differentiated retail and wholesale formats, represented in 403 Retail and Wholesale stores in 13 sub-Saharan countries, we have leading market shares in the general merchandise, liquor, home improvement and wholesale food markets. The Group’s key foundations of high volume, low cost, responsible business and operational excellence enable our price leadership. Holders of Massmart Holdings Limited ordinary shares ("Massmart Shareholders") are hereby advised that the Board of Directors of Massmart Holdings Limited (“Massmart”) and the Board of Directors of Walmart Inc. (“Walmart”) have reached in principle agreement regarding the terms and conditions of a potential offer by Walmart to acquire all of the issued ordinary shares in Massmart Holdings Limited ("Ordinary Shares"), other than those Ordinary Shares already indirectly held by Walmart through its wholly-owned subsidiary, Main Street 830 Proprietary Limited, or a treasury shareholding subsidiary of Massmart, pursuant to a scheme of arrangement and standby general offer ("Potential Offer"). If the Potential Offer is made and implemented, it would result in the delisting of all the Ordinary Shares from the main board of the JSE. 21; 22; 23 2023 © The Independent Institute of Education (Pty) Ltd 2023 Page 4 of 12 Developing our Leadership The Massmart Leadership Programmes start at New Leader to Executive Development and are run through partnerships with local providers and our Walmart colleagues, they include: • Operations Leadership Journey- building operational leadership excellence. • Leadership and the Future of Retail – developing future-fit retail leaders who are able to navigate the complexities of the future world of retail. • The Integrated Leader – focused on empowering leaders with the essential skills, competencies and qualities necessary for coaching strong organisational cultures and ensuring sustainable growth. • Personal Mastery – harnessing connection and collaboration skills to enhance personal and professional relationships • Next Generation Grow, Empower, Move and Soar (GEMS) – aimed at accelerating our transformation agenda, this programme provides female associates in middle-management with a springboard for succession, progression and mobility. Our key functional and technical training programmes: • The Merchant Development Programme • Fulfilment Skills Programme • Management Skills Programme • Retail Management Programme Digital learning We recognise the role of digital as an enabler for continuous learning. That is why this is a focus for us as we look for innovative ways to upskill our associates. Through our digital learning platforms we are able to provide users with a wide variety of short courses in video, audio and e-book format, which make it possible for associates to learn remotely and at their own pace. Massmart Launches New Small Appliances Private Brand As part of the expansion of its private brand offering, Massmart has acquired appliance brand, Eiger, as part of its Private Brand portfolio. The acquisition of Eiger is the outcome of thorough analysis of 21; 22; 23 2023 © The Independent Institute of Education (Pty) Ltd 2023 Page 5 of 12 the local appliance market. “Through our ongoing research, we identified a clear gap in South Africa for a brand of well-priced, beautifully designed small appliances that not only have all the features customers expect in a premium product, but also add to the aesthetic appeal of their kitchen countertops” says Trevelyan Hall, Group Private Brand Merchandise Executive at Massmart. “This led us to Eiger, a relatively new brand in the market which has earned excellent reviews from customers since it launched.” The group notes that even with rising pressure on household budgets, research shows that small appliances are still viewed as a necessity by the South African consumer. “As cooking oil prices rise, for example, the air fryer remains a popular item with customers and is now seen as a staple item in the kitchen,” says Hall. To add additional value, Eiger promotes a healthy modern lifestyle by offering free recipe books and meal planning templates to customers.
Review the following case study about Massmart, then answer the questions that follow.
Reviewed Interim Results for the 26 weeks ended 26 June 2022
Massmart is an African retail group, with total Group sales of R41.3 billion for the 26 weeks ended
26 June 2022. Through our widely recognised and differentiated retail and wholesale formats,
represented in 403 Retail and Wholesale stores in 13 sub-Saharan countries, we have leading market
shares in the general merchandise, liquor, home improvement and wholesale food markets. The
Group’s key foundations of high volume, low cost, responsible business and operational excellence
enable our price leadership.
Holders of Massmart Holdings Limited ordinary shares ("Massmart Shareholders") are hereby
advised that the Board of Directors of Massmart Holdings Limited (“Massmart”) and the Board of
Directors of Walmart Inc. (“Walmart”) have reached in principle agreement regarding the terms and
conditions of a potential offer by Walmart to acquire all of the issued ordinary shares in Massmart
Holdings Limited ("Ordinary Shares"), other than those Ordinary Shares already indirectly held by
Walmart through its wholly-owned subsidiary, Main Street 830 Proprietary Limited, or a treasury
shareholding subsidiary of Massmart, pursuant to a scheme of arrangement and standby general
offer ("Potential Offer"). If the Potential Offer is made and implemented, it would result in the
delisting of all the Ordinary Shares from the main board of the JSE.
21; 22; 23 2023
© The Independent Institute of Education (Pty) Ltd 2023
Page 4 of 12
Developing our Leadership
The Massmart Leadership Programmes start at New Leader to Executive Development and are run
through
• Operations Leadership Journey- building operational leadership excellence.
• Leadership and the Future of Retail – developing future-fit retail leaders who are able to
navigate the complexities of the future world of retail.
• The Integrated Leader – focused on empowering leaders with the essential skills,
competencies and qualities necessary for coaching strong organisational cultures and
ensuring sustainable growth.
• Personal Mastery – harnessing connection and collaboration skills to enhance personal and
professional relationships
• Next Generation Grow, Empower, Move and Soar (GEMS) – aimed at accelerating our
transformation agenda, this programme provides female associates in middle-management
with a springboard for succession, progression and mobility.
Our key functional and technical training programmes:
• The Merchant Development Programme
• Fulfilment Skills Programme
• Management Skills Programme
• Retail Management Programme
Digital learning
We recognise the role of digital as an enabler for continuous learning. That is why this is a focus for
us as we look for innovative ways to upskill our associates. Through our digital learning platforms
we are able to provide users with a wide variety of short courses in video, audio and e-book format,
which make it possible for associates to learn remotely and at their own pace.
Massmart Launches New Small Appliances Private Brand
As part of the expansion of its private brand offering, Massmart has acquired appliance brand, Eiger,
as part of its Private Brand portfolio. The acquisition of Eiger is the outcome of thorough analysis of
21; 22; 23 2023
© The Independent Institute of Education (Pty) Ltd 2023
Page 5 of 12
the local appliance market. “Through our ongoing research, we identified a clear gap in South Africa
for a brand of well-priced, beautifully designed small appliances that not only have all the features
customers expect in a premium product, but also add to the aesthetic appeal of their kitchen
countertops” says Trevelyan Hall, Group Private Brand Merchandise Executive at Massmart. “This
led us to Eiger, a relatively new brand in the market which has earned excellent reviews from
customers since it launched.”
The group notes that even with rising pressure on household budgets, research shows that small
appliances are still viewed as a necessity by the South African consumer. “As cooking oil prices rise,
for example, the air fryer remains a popular item with customers and is now seen as a staple item
in the kitchen,” says Hall. To add additional value, Eiger promotes a healthy modern lifestyle by
offering free recipe books and meal planning templates to customers.
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