Table of Contents
Key Points:
- Under Blair’s leadership, Mr Price’s shares increased by 4.7%, reflecting a market performance uplift.
- The retail group reported a 4.6% rise in sales for the 13-week period, reaching R8.5 billion ($465 million).
- Mr Price gained over R1.1 billion ($602 million) in market share over the past 12 months, demonstrating consistent growth.
Under the leadership of South African business executive Mark Blair, retail group Mr Price has reported a rise in its market performance, marked by a 4.7-percent increase in its shares.
This uplift reflects a successful period for the group, supported by recent strategic acquisitions and improved sales metrics.
Sales and market share growth
Mr Price announced a notable increase in sales for the 13-week period ending June 29, 2024, with revenues climbing 4.6 percent to R8.5 billion ($465 million). This growth outpaced the broader market, which experienced a slight decline of 0.2 percent in retail sales. The company’s performance was bolstered by three key acquisitions, which contributed to a higher market share.
The company’s comparable store sales showed a modest increase of 0.1 percent. Additionally, other income grew by 9.3 percent to R321 million ($175, 772), driven by a larger average debtors’ book and higher debtors’ interest and fees, which rose by 6.6 percent. Mr Price’s South African retail sales increased by 4.3 percent to R7.8 billion ($426 million), while non-South African corporate-owned store sales surged by 8.5 percent to R668 million ($36 million).
Online sales and market position
Online sales, accounting for 2.4 percent of total retail sales, saw a 3.8-percent increase during the period. This growth accelerated to double digits in June, particularly due to strong performance in Mr Price Apparel. The group has maintained a steady market share increase for 11 consecutive months, gaining over R1.1 billion ($602 million) in market share on a 12-month rolling basis.
Retail environment and sales trends
The retail environment during the reported period was influenced by several factors. April and May, the initial months of the 2025 financial year, were characterised by subdued trade due to Easter and school holidays falling in March, which negatively impacted April’s sales performance. Higher average temperatures in April and May delayed consumer spending on winter merchandise.
Furthermore, consumer spending was cautious ahead of the late May elections, but post-election, the formation of a government of national unity improved consumer sentiment, boosting sales performance in June. The late arrival of cold weather in June led to increased demand for winter merchandise, helping to drive sales.
The group’s retail sales grew by 0.9 percent in April and May, in contrast to the broader market’s decline of 4.6 percent. Sales growth accelerated to 12.7 percent in June, surpassing the market’s growth of 10.3 percent.
Acquisitions and store expansion
The three recent acquisitions were a drive, delivering the highest sales growth for the business. The group’s store footprint expanded by 35 stores, bringing the total to 2,935 stores. Cash sales, which make up 87.5 percent of total retail sales, increased by 5.2 percent, while credit sales rose by 0.3 percent. Demand for new accounts grew by 42.7 percent, though the approval rate remained low at 18.7 percent, reflecting a cautious approach to credit in a challenging environment.
Focus on stock management and future outlook
Despite Mr Prince financial failure in 2023, Mr Price has concentrated on effective stock management, ensuring a clean inventory position as it transitions from winter to spring/summer with fresh merchandise.
The outlook for South Africa is positive, driven by favourable election outcomes, more than 100 days without load-shedding, and improving consumer confidence. Despite this optimistic outlook, the medium term is expected to remain challenging until key relief measures are implemented.
Management remains focused on continuing its profitable market share gains and positioning its brands to benefit from the anticipated consumer recovery. The company is also navigating supply-chain volatility, particularly disruptions through the Red Sea affecting global shipping lines. However, Mr Price has plans in place to ensure timely stock arrivals for the crucial festive trading
