Retail group Massmart announced on Monday they are in a consultation process that could lead to the closure of 34 stores nationwide and the retrenchment of 1 440 employees in what they have termed their “store optimisation project”.

Following the announcement, the company share price rose by almost 4%, according to The South African.

Massmart is a subsidiary of the US giant Walmart and is the umbrella company covering Game, Makro, Builder’s Warehouse, Cambridge Food, Jumbo, CBW, and Dion Wired.

The group confirmed that poor sales and high operational costs in certain stores led to the decision shaking thousands of households.

Members of the public have taken to social media in reaction to the announcement, with some even linking it to the political tension between the US and other nations such as Iran.

Picture: Unsplash

Article written by

Anita Froneman