South African headache for Walmart

Ahead of publication of annual results on February 27, 2020, Massmart Holdings (owned at 52% by Walmart and controlling chains such as Builders Warehouse, Makro, Game or Jumbo Cash and Carry) forecast an annual loss averaging US$60 million. This is despite sales rising by 3% to US$6.5 billion. The Walmart’s subsidiary has been battling tough economic conditions in South Africa, where shoppers have focused spending on food at the expense of durable goods. Massmart is highly exposed on the non-fo