Warren Buffett dumps 90% of his Walmart shares

US billionaire investor Warren Buffett's recent decision to sell his shares in Walmart, the parent company of South Africa's Massmart, has put the spotlight on the retail giant's performance. Today, Massmart released its results for the 52 weeks ending in December 2016, showcasing a resilient performance in a tough operating environment. Guy Hayward, the Chief Executive Officer of Massmart, joined CNBC Africa to discuss the company's strategies and outlook moving forward. Hayward highlighted that despite challenges, Massmart managed to achieve growth by focusing on customer satisfaction through competitive pricing, product availability, and cost management. The company reported a 7.7% sales growth and a 5% expense growth, leading to improved profits. Looking ahead, Hayward projected a positive outlook for 2017, citing potential economic improvements such as lower inflation, interest rates, and a stronger rand, which could benefit consumers. In terms of product performance, Massmart's liquor sales stood out as a strong contributor to revenue, with Hayward attributing the success to product availability, competitive pricing, and strategic promotions around events like Christmas. However, the company faced challenges in expanding its fresh food category due to competition commission issues regarding lease agreements with other retailers. Hayward expressed optimism that the tone around the agreements has shifted positively following legal victories, paving the way for smoother expansions in the future. While South Africa showed strong sales growth, the rest of Africa experienced softer results, primarily due to economic challenges and adverse weather conditions like droughts. Despite these hurdles, Massmart remains committed to its African expansion plans, aiming to open five to ten stores annually and increase African retail space by 25% in the coming year. The focus will be on key brands like Game and Builders Warehouse, known for their successful performance in the region. Hayward emphasized that Massmart's long-term strategy in Africa remains unchanged, with a commitment to consistent growth and market diversification. The company targets sub-Saharan Africa for its expansion, emphasizing the potential of brands like Game and Builders Warehouse to drive growth in the region. As Massmart continues to navigate market challenges and expand its footprint, the company remains optimistic about its future prospects and its ability to deliver value to shareholders and consumers alike.