November 30, 2021

Massmart to boost online operations with OneCart acquisition

Makro and Sport proprietor Massmart has entered into negotiations to purchase a controlling stake in OneCart to boost its centralised eCommerce functionality.

OneCart is a fast-moving shopper items market and logistics platform that companions with retailers to allow quick, versatile and environment friendly online gross sales and residential supply countrywide.

The platform gives entry to merchandise throughout the dry grocery, frozen and contemporary meals, liquor, child, well being and sweetness, family and pet provides classes – all made obtainable to customers through a single purchasing interface.

“In keeping with the company’s strategy to invest in and accelerate its eCommerce presence, this potential acquisition will allow the company to further expand its capabilities in the fast-growing on-demand delivery segment, while continuing to support the independent retailer marketplace model of OneCart,” Massmart mentioned in a press release on Wednesday (25 August).

The group mentioned it’s presently within the strategy of negotiating and finalising transaction documentation.

“Negotiations are at an advanced stage and Massmart is hopeful to conclude discussions in the coming weeks pending finalisation of a few key matters.”

Offloading non-core companies 

On Friday, Massmart introduced the sale of a number of non-core companies to the Shoprite Group for R1.36 billion. The sale will see Shoprite take possession of Cambridge Meals, Rhino, Massfresh and 12 Money & Carry shops.

Massmart mentioned that it’s going to use the sale proceeds to pay down drawn financial institution amenities and spend money on e-commerce. It’ll additionally pump cash into merchandise areas the place the remaining Massmart manufacturers are the market leaders.

This contains basic merchandise (Makro), DIY (Builders) and wholesale meals and liquor.

“The sale marks another step in the group’s portfolio optimisation process and will, amongst other benefits, free-up management time to enable increased focus on leveraging Massmart’s core merchandise and market strengths,” mentioned Massmart Group chief government Mitch Slape.

Beneath the phrases of the deal, the group mentioned that workers affected by the sale will proceed to be employed by Shoprite on phrases and situations which can be “on the whole, not less favourable than their existing employment contracts”.

“We are of the opinion that these are sound businesses with good long-term prospects. They are being sold as going concerns and, in the hands of a well-established and efficient fresh food and grocery retailer, will reach their full potential, thereby saving jobs and protecting livelihoods,” Slape mentioned.

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