Massmart closures: 'It looks like the idea is to shut down DionWired entirely'
13 days ago
Retail group Massmart plans to shut down 34 of its stores, including all its DionWired outlets.
Business Insider's Phillip de Wet says this could finally spell the end of the Dion brand.
A total of 23 DionWired outlets are under threat and another 11 Masscash stores. More than 1,000 jobs are on the line.
Dion-Wired is Massmart’s electronics and appliances subsidiary, while Masscash is its wholesale entity.
De Wet says DionWired has been underperforming for quite some time.
It does look like the idea is to shut down DionWired entirely. It's not a huge surprise.Phillip de Wet, Associate Editor - Business Insider Inc
We know Massmart has been struggling with DionWired. If it hasn't been losing money, Dion Wired has certainly not been making decent profits for some time now.Phillip de Wet, Associate Editor - Business Insider Inc
Massmart is doing this rightsizing, they are taking about 34 stores that they may want to close down.Phillip de Wet, Associate Editor - Business Insider Inc
The restructuring comes just five months after new CEO Mitchell Slape was brought in as a 'fixer' from Walmart, de Wet explains.
He says some analysts are waiting to see whether DionWired's electronics offering could be reinvented and absorbed into MassMart's Game stores.
Listen to the discussion on Today with Kieno Kammies:
This article first appeared on CapeTalk : Massmart closures: 'It looks like the idea is to shut down DionWired entirely'