Skip to main content

Game and Makro owner says second booze ban caused R1.1bn loss in sales

| Economic factors

Massmart has added its voice to retailers who lament the alcohol sales ban for causing them to part with billions of rands they could have made had the sale of liquor not been disrupted.

The owner of Makro and Game said the second instalment of liquor sales ban which ran from mid-July to mid-August caused it to lose approximately R1.1 billion when compared to the same period last year. The retail giant said when taking into account the impact of the full liquor sales ban, its third quarter sales decreased by 7.2%.

Massmart, which had already clocked a R1.2 billion loss at half-year mark in June, said its total estimated lost sales as a result of Covid-19 sales restrictions climbed to at least R5.7 billion by 27 September, when compared to the first nine months of 2019.

Apart from the setback caused by the return of full liquor sales ban in July, Massmart said the easing of trading restrictions slightly improved trading conditions when South Africa moved to Alert level 2 in mid-August and then level 1 in mid-September as the company saw an increase in foot traffic in most of its stores.

However, the group's total sales for the nine months ended on 27 September were still down 8.9% compared to the same period last year, reaching R60.5 billion. C comparable store sales – which do not include the impact of new stores – decreased by 8.8%.

Total sales from Massmart’s South African stores decreased by 9.4% or 8.8% on a comparable stores basis. The group's rest of Africa operations fared better, recording a 3.8% decline in total sales from and 5.0% on a comparable store basis.

We live in a world where facts and fiction get blurred

In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.

Pin It

Related Articles

Budget: Liquor, cigarettes to cost more, no inc...

By: IOL Finance 2024 Budget made provision to raise R15 billion in taxes to alleviate fiscal pressure and support debt stabilisation.

Retail consumers now seeking value as cost of l...

By: IOL COST-of-living pressures muzzled sales volumes for retailer Spar’s Southern African business, including South Africa, although group turnover, which also accounts for its stores in Switzerland, Ireland and England, was up 9.3% for the fiv...

Excessive heat could result in higher food pric...

By: Given Majola - IOL The excessive heat across South Africa currently is a significant concern for the farming sector, according to the Agricultural Business Chamber (Agbiz).

Budget 2024: South Africans should not expect a...

By:Dhivana Rajgopaul - IOL Amid the budget deficit not moving in the right direction, a tax specialist has said South Africans can expect Finance Minister Enoch Godongwana to raise the price of beer and cigarettes, but being an election year, no ...

Retail sales cool in 2023 with consumers still ...

By: Siphelele Dludla - IOL Consumers in South Africa are expected to continue struggling this year under the brunt of stubbornly high inflation, rising cost of borrowing and weak consumer confidence after retail activity plunged in 2023, in spite...