The company, which had earlier flagged an “extremely difficult” start to the year, reported a pretax loss of $28.27 million.
Workers in the wholesale and retail sector have been given a 4.5% salary increase backdated to August 2.
Analysts expect to see a weak retail sales numbers as Statistics South Africa prepares to release the April retail trade sales figures on Wednesday.
South Africa’s retail sales rose in August as household goods, clothing and cosmetics grew, data showed on Wednesday, with recovering consumer spending a sign the economy is climbing out of a recession that has piled pressure on President Cyril Ramaphosa.
Massmart Holdings expects half-year profits to fall by as much as 26%, the South African retailer said on Monday citing muted sales growth.