Massmart Welcomes Competition Appeal Court Ruling
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Massmart welcomes the decision handed down by the Competition Appeal Court (CAC) earlier today in which it provided clarity regarding the supplier development fund that was volunteered as a condition by the merging parties during the Competition Tribunal Hearing. The clarity provided on the mechanics and focus of the supplier development programme is a positive
endorsement of the initiative, as is the guidance provided by the CAC that the merged firm has flexibility, at is discretion, to invest up to R200 million over the next five years in identifying and assisting micro, small and medium suppliers that can benefit most from Massmart-Walmart’s expertise.
In this context, we agree with the CAC that the focus of the programme on upgrading skills is a more important consideration than the quantum of monies invested. The CAC’s decision closes this chapter. Our immediate objectives now are to continue to help South Africans save money and to identify and act on opportunities that will deliver positive economic outcomes as a result of Walmart’s entry into South Africa. This will include helping to improve local manufacturing competitiveness and integrating small-scale farmers into the Massmart-Walmart supply
chain by providing them with training, mentoring and technical assistance.
To date, Massmart-Walmart has saved South African consumers more than R250m through a series of extended price cut promotions. The extended price cut promotions have allowed consumers to
purchase a broad range of items at reduced prices over a ten-week period, a first in South Africa. We have also facilitated local supplier access to export their products to other Walmart markets. This includes listing South African wines, panel heaters and marine products in Walmart stores in Canada and the United States. Massmart CEO, Grant Pattison said: “It is important to emphasise that, notwithstanding the differences of opinion expressed during the merger approval process, we understand that our success will be measured not only by our commercial achievements but also by our positive socio-economic impact. We look forward to working with the fund’s advisory board to achieve an impactful supplier development programme.”
Media release issued by Brunswick on behalf of Massmart
Brunswick SA – 011 502 7300
Cecilia de Almeida – 083 325 9169
Gordon Kgaugelo Letsoalo – 079 510 6127