Massmart has announced a major development in its business, saying eight Game stores are set to close their doors in South Africa.
The latest move will see about 700 workers losing their jobs and that is the information at BusinessTech Africa’s disposal.
Three months ago, the group started with a section 189 retrenchment process with these workers, and News24 reports that there are discussions to finalise the process.
“We are still in discussions with staff to finalise closure dates. As is always the case, we will apply our best efforts to identify opportunities for the redeployment of the affected staff members within the broader Massmart Group,” a spokesperson is quoted.
Three stores in Johannesburg, Northriding, Edenvale, and Mall of the South, are set to shut doors and it is reported that Game has been a thorn in the side for Massmart.
The shop is a major contributor to the company’s loss of more than R900 million in just six months to the end of June.
“At its results presentation last month, the company said it wanted to divest from 14 Game stores in the east and west Africa, as well as 15 Game stores in South Africa,” reports the publication.
“At the end of last year, it identified 13 local stores that were underperforming [and] non-core, of which eight will now be closed.
“Game is currently running an advertising campaign for the shutdowns, proclaiming that everything must go at these stores, with large discounts on all products.”
Meanwhile, analysts and economists believe this will allow Walmart to restructure Massmart, with more store closures and other painful measures – away from public scrutiny.
As part of the changes in the company, Massmart has already closed the Dion Wired business and sold off Cambridge Food, Rhino, and Massfresh stores to Shoprite.
Just in August, Massmart’s US owner, the retail giant Walmart, confirmed that it wanted to buy out minority shareholders and delist the company from the Johannesburg Stock Exchange – Massmart also owns Makro and Builders Warehouse.
Game stores that will be closed
Cape Town City Centre
Greenstone Shopping Centre in Edenvale
King Senzangakhona Centre in Ulundi
Westwood Mall in Westville
Mall of the South in Johannesburg
Hazyview Junction
Bel Air Shopping Centre in Northriding
Gilwell Shopping Centre in East London
Image: Game Store/MoneyWeb
