Massmart 52 weeks sales update

OK, Massmart out with a sales update this morning, here goes my best copy paste job: "Shareholders are advised that the Massmart Group's total sales for the 52 weeks to June 2011 increased to R53.0 billion, representing growth of 11.7% over the prior 52-week period, with year-to-date deflation estimated at 1.3%. Comparable store sales increased by 5.2%." Seems decent enough, and what does make this a little more impressive is that inflation is a lot lower this year than in years gone by.

Tell that to the folks fighting tooth and nail for higher wages. I must be honest, my socialist cap (brand new, hardly worn, 20 years old) tells me that the poor worker is downtrodden and earns a pittance. I had a long chat to a client who spoke of poor working conditions in clothing factories, but at the same time that was all the working class had. A job paying 220 ZAR a week is a slave wage in a South African context, but the shutting of the doors means no jobs altogether. That is an ideological counter argument and now I exposed that I was wearing my imperialist slash capitalist cap when I said that. Leave it for another day.

OK, so which Massmart divisions were smoking? Here goes, another copy paste job: "* Massdiscounters increased by 9.4% (3.7% comparable) with deflation of 7.3%;

* Makro increased by 10.5% (6.9%) with deflation of 0.4%;

* Massbuild increased by 14.1% (7.2%) with inflation of 0.8%; and

* Masscash increased by 13.1% (4.1%) with inflation of 2.1%."

Sounds decent enough, you see what I was saying about the inflation part, nothing. So seemingly these sales might actually be a whole lot better than you think you see. The stock price (the voters on the news) sees the stock ever so slightly lower on a slightly better day for the market. In fairness the stock mid morning has traded less than 10 percent of daily volume. Results are expected on August the 25th.