UPDATE 1-Massmart sales growth slows on cigarette change
* 44-week sales up 11.8 pct, 9.7 pct on same-store basis
* Growth slows due to cigarette wholesaling model change
* Product inflation 11.8 pct
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JOHANNESBURG, May 12 (Reuters) - South African general retailer Massmart Holdings Ltd (MSMJ.J) boosted 44-week sales by 11.8 percent thanks to higher prices but said growth slowed due to a change in the way wholesale cigarettes are sold.
The company said sales in the 44 weeks to May 3 totalled 36.7 billion rand ($4.42 billion), an increase of 9.7 percent on a comparable stores basis. The rise was driven largely by product inflation of 11.8 percent over the period.
The company, which owns the Game general merchandise stores and Makro discount chain, said growth was capped by the wholesale cigarette issue, which hit sales at its Masscash division, reducing overall revenue by about 1.3 percent.
Massmart said its core Massdiscounters division lifted sales by 12.5 percent, with a stronger rand currency capping growth at its African Game stores outside South Africa. Continued...


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