Massmart Q1 sales up 15 pct, sees solid full year

Massmart Holdings, the South African retailer majority owned by Wal-Mart Stores, said on Monday first-quarter sales rose nearly 15 percent, and forecast a solid year ahead.

Wal-Mart, the world's biggest retailer, took a 51 percent stake in Massmart in June, targeting a rise in consumer spending as sub-Saharan Africans earn more money.

Sales for the 14 weeks to Oct 2 rose 14.7 percent from the same period a year earlier, Massmart said in a statement.

With the first quarter's sales indicating a return to stability with growth in all categories and divisions, the financial year ahead looks to be solid. Management will have to balance operating discipline with the investment in growth and the speed of integration, the company said in a statement.

South Africa's competition appeals court will hear a two-day appeal from three government departments and the country's main service industry union this week. The government and the union are want the conditions on the deal changed. South Africa's competition regulator approved the acquisition in May with minimal conditions.

The government and the union want stricter conditions on Massmart's use of local suppliers.

Shares of Massmart are down 0.14 percent at 146.29 rand at 1302 GMT, compared with a 0.19 percent decline in the benchmark Top-40 index.