Industrial Correspondent

A FIRE gutted Massmart's Makro store in Strubens Valley, on the West Rand, yesterday, with R65m worth of stock going up in smoke .

This is the second Makro store to be destroyed in a fire in three years the first being in Woodmead, Johannesburg.

Massmart CEO Mark Lamberti said yesterday the latest fire at its 13000m² store started in the receiving area of the liquor department, where construction work was under way as part of an expansion project.

The store opened last year.

He said a spark from an angle grinder caused a small fire, which "quickly got out of control".

The store's management quickly evacuated the customers and staff and only a few sustained minor injuries, he said.

Lamberti could not verify if the store's sprinkler system went off to stop the blaze. He said an investigation into the fire would give clues on that question.

The fire spread quickly. It started at 1.45pm and when Lamberti arrived at the store an hour later , it was in flames.

Lamberti said that the fire would not affect Massmart's results for the year, because the group was insured for the loss of the store, its stock and the income it generated.

The fire that destroyed its Woodmead store caused R200m worth of damage. The store was rebuilt and reopened within five months.

The fire comes at a time when Massmart is looking to increase its store base in southern Africa.

The group planned to roll out at least 44 stores in its Game, CBW and Builders Warehouse chains over the next three years.

Massmart closed down 2,24% to R30,50, with 674088 shares traded in 139 deals on the JSE Securities Exchange SA yesterday.

May 14 2004 07:17:39:000AM Larry Claasen Business Day 1st Edition