Massmart Welcomes Competition Appeal Court Ruling

Massmart Welcomes Competition Appeal Court Ruling

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 its 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.”

You must be logged in to post a comment Login