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Massbuild

 

builders-express builders-superstore builders-trade-depot builders-warehouse

 

The Massbuild Brands

Massbuild operates four complementary brands: Builders Warehouse, which operates large DIY and home improvement stores in major urban areas; Builders Express and Builders Superstore, a chain of smaller neighbourhood home and garden improvement stores; and Builders Trade Depot, a chain of building contractor outlets located in industrial sites in peri-urban and urban areas focusing on delivering the core range for all phases of building projects.

Massmart acquired five Builders Warehouse stores operating in Johannesburg and Pretoria in 2003, bought and rebranded three De La Rey stores in the Western Cape in 2005 and now operates 34 Builders Warehouse stores in South Africa, Botswana and Mozambique. Builders Warehouse follows the big-box or warehouse retail format, offering home owners, DIY enthusiasts and building and maintenance contractors a comprehensive range of competitively priced products under one roof, with a large garden centre display and builders’ supplies yard. The brand is unique in that it is the only home improvement warehouse in South Africa.

Builders Express was formed in 2005 when Massmart bought and rebranded 14 Servistar stores operating in the Eastern Cape and KwaZulu-Natal. Massbuild now operates 36 home and garden Builders Express stores in South Africa that cater to home owners. They have a strong focus on convenient locations, aesthetically pleasing displays, customer-friendly store layout and personalised service and advice. Builders Express is integrated into Builders Warehouse with a single management structure.

Builders Trade Depot was formed when 34 Federated Timber stores were acquired and rebranded in 2005. Seven smaller stores have since been closed and, after the store conversions and acquisitions to date, Builders Trade Depot now operates 20 outlets catering mostly for medium- to large-sized contractors and tradesmen engaged in building, maintenance and renovation projects. It also focuses on servicing the needs of construction entrepreneurs who need trade credit, telephonic ordering and want bulk goods delivered from low-cost outlets.
The first Builders Superstore opened in November 2013 and caters for customers with homes situated in dense residential, township, rural and developing areas, and will be conveniently located near commuter nodes.

Builders Superstore was formed in 2013 and is a discount Home Improvement format in townships and towns, servicing surrounding rural areas.  They are conveniently located, close to transport nodes and a major food retailer.

For the year ended 29 December 2013

Total
Rm
Corporate
Rm
Massdiscounters
Rm
Masswarehouse
Rm
Massbuild
Rm
Masscash
Rm
Sales 72 263.4 - 16 740.6 19 675.1 9 583.6 26 264.1
Operating profit before interest and taxation 2 152.5 (37.9) 449.0 988.1 505.3 248.0
Trading profit before interest and taxation 2 145.4 - 366.6 990.2 507.6 281.0
Net finance (costs)/income (255.1) (349.6) 34.0 38.5 29.2 (7.2)
Operating profit before taxation 1 897.4 (387.5) 483.0 1 026.6 534.5 240.8
Trading profit before taxation 2 239.9 - 400.6 1 028.7 536.8 273.8
Inventory 10 115.5 12.6 3 647.2 2 618.2 1 597.0 2 240.4
Total assets 26 147.9 (2 614.7) 7718.3 7 166.8 5 212.0 8 665.5
Total liabilities 20 778.3 (6 027.7) 7522.2 6 587.8 4 857.4 7 838.6
Net capital expenditure 2 061.4 759.0 489.7 344.8 275.1 192.8
Depreciation and amortisation 731.1 33.9 256.4 145.4 121.2 174.2
Impairment losses 41.6 - - 2.1 - 39.5
Non-cash items other than depreciation and impairment 138.0 458.0 23.3 (352.2) 13.6 (4.7)
Cash flow from operating activities 1 914.5 399.4 990.1 273.9 356.9 (105.8)
Cash flow from investing activities (2 306.3) (1 424.0) (490.6) (385.2) (275.2) 268.7
Cash flow from financing activities 293.0 819.4 (621.6) 209.3 1.4 (115.5)
Inventory days 63.7 - 109.3 59.2 92.3 35.2
Number of stores 376 - 143 19 92 122
Trading area (m2) 1 481 308 - 475 331 195 794 410 546 399 637
Trading area (m2) increase on Dec 2012 4.8% - 7.7% 9.3% 3.7% 0.6%
Trading area (m2) increase on Dec 2012
(excluding re-measurements)
4.8% - 6.5% 9.3% 5.8% -0.2%
Average trading area per store (m2) 3 940 - 3324 10 305 4 462 3 276
Distribution centre space (m2) 323 813 - 178 488 51 300 61 733 32 292
Distribution centre space (m2) increase on Dec 2012 11.4% - - - 108.4% 3.2%
Number of full-time equivalents 37 554 403 12 870 4 929 8 882 10 470
Number of full-time equivalents increase on Dec 2012 4.2% 28.3% -6.5% 27.9% 9.9% 4.3%

 

  • The corporate column includes certain consolidation entries.
  • All intercompany transactions have been eliminated in the above results.
  • Trading profit before taxation is earnings before corporate net interest, asset impairments, BEE transaction IFRS 2 charges, foreign exchange movements, loss on disposal of business, and assets classified as held for sale.
  • Net capital expenditure is defined as capital expenditure less disposal proceeds.

 

Massbuild Value Proposition

Builders Warehouse and Builders Express are both pioneers in introducing retail principles to the South African DIY and home improvement sector and attaching garden centres to hardware stores. The clean, friendly and uncluttered look and feel of our stores offer customers a shopping experience not traditionally associated with the industry. Our new stores aim to introduce ‘retail theatre’ where lighting, colour and ambiance enhance the shopping experience, signage is clean and bold, and product displays are enticing.

Several of our private brands, including Mastercraft and Builders Pride, have become household names, with our customers assured of stringent quality control and best supplier practices. In both the residential and commercial property markets, Builders Trade Depot’s value proposition to customers is our ability to consistently deliver an appropriate, professional range at highly competitive basket prices, combined with exceptional contractor support services in a relationship-driven environment.

The first Builders Superstore opened in November 2013 and caters for customers with homes situated in dense residential, township, rural and developing areas, and will be conveniently located near commuter nodes.

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