The company, majority-owned by Walmart, was already struggling as consumer finances come under strain in South Africa and reported its first trading loss in two decades in August last year.

It said on Wednesday that the nine-week-long strict lockdown this year cost it R4.6 billion ($267.08 million) worth of sales, pushing total sales 10.3% lower in the 23 weeks ended 7 June despite some pent-up demand as stores re-opened.

The company’s headline loss per share for the 26 weeks to 28 June would likely be at least 182.4 cents wider than the year-earlier loss of 364.7 cents, it said, with operating costs also rising as it spent R50 million on safety protocols.

Headline earnings per share are the main profit measure in South Africa.

“Massmart’s balance sheet remains strong and... the Massmart Group has sufficient cash facilities and resources to meet its obligations,” it said in a trading statement, adding it had secured a R4 billion loan from Walmart.

The impact of the virus has accelerated some of the turnaround strategies it announced earlier in the year, especially a plan to slash costs and restructure into wholesale and retail units, it said.

Massmart’s half-year results will be published on 27 August.

Eyewitness News