Per media reports,
) South African subsidiary, Massmart, is undergoing a major
change in its management. Grant Pattison - who steered the
company for seven years as the Chief Executive Officer (CEO) -
stepped down on Apr 10, 2014.
Pattison will be replaced by Massmart Chief Operating Officer,
Guy Hayward, effective Jun 1, 2014. Pattison will continue to
serve the company as a non-executive director until the end of
Pattison, who joined Massmart 23 years ago, was the main
person behind the sale of majority stake of the company to
Wal-Mart. The retail giant bought 53% stake in Massmart in 2011
for $1.58 billion (ZAR 148 billion) as part of its emerging
market strategy. In his tenure, Pattison also helped the company
enter the e-Commerce business which is helping it to maintain its
share in the African market.
Massmart, based in Johannesburg, is a leading distributor of
consumer goods and a retailer of general merchandise, home
improvement equipment and supplies in the African continent.
Massmart operates 290 stores in 13 countries in Africa, with the
vast majority of its stores in South Africa.
Pattison is leaving Massmart at a the subsidiary's most
important segment - Game and Masscash- is undergoing challenges.
Moreover, the company higher than planned investment combined
with soft top lines has resulted in lower margins in the past few
Wal-Mart has significant exposure in the international
markets, which makes it the largest retailer in the world.
Currently, the company is expanding its reach in Brazil and China
by reintroducing its 'everyday low price' strategy. The company
intends to open 115 supercenter stores and 270-300 small-format
stores in fiscal 2015 in many of the markets, including the U.S.,
Mexico and the U.K.
Wal-Mart currently carries a Zacks Rank #4 (Sell) Some
better-ranked stocks in the consumer staples sector worth
Diamond Foods Inc.
). All the stocks sport a Zacks Rank #2 (Buy).
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