|Massmart to grow Dion Wired|
Friday, 26 February 2010 02:00
Massmart aims to open another seven Dion Wired stores over the next three years, and acquire another four spaces to convert into the format.
The company, home to brands such as Builders Warehouse and Makro, yesterday released half-year results to December. Overall, sales increased 6.1%, operating profit decreased by 15% and headline earnings were down 19.5%.
However, Dion Wired is out-performing its competitors and taking market share, Massmart says.
Absa Investments analyst Chris Gilmour says the company plays in the same market space as Incredible Connection and Hi-Fi Corporation, both of which belong to the JD Group. He says the brand is now being rolled out nationally.
During the half year, the company opened four Dion Wired stores, taking its total to 10, with plans for another 11 on the cards. Massmart says it will open another seven stores, and acquire another four outlets.
Massmart is confident the worst of the recession is behind it, and says it is seeing growth in sales of “big ticket” items. However, consumers are still under pressure despite economic growth improving.
The economy grew 3.2% in the last quarter of the year, an improvement from the 0.9% it grew at during the third quarter. However, retail sales were still down in November.
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