Mr Price grows market share and capitalises on its value retailing formula
Nov 17 2008
Retail Wrap >>

Mr Price Group Ltd results for the half year ended September 2008 report retail sales growing 18.6% to R3.9 billion for the period. 

“In view of the serious economic downturn, we are particularly pleased with this performance,” said McArthur. “There is little question that South African consumers are cash-strapped as a consequence of food price increases, rising fuel and debt servicing costs, healthcare and municipal rates. Consumer confidence is now well below the 25 year average. The past six months have been some of the most challenging we have experienced.”

“We believe that positioning ourselves as a value retailer has been strategically sound and this, taken together with the fact that we are still a predominantly cash business, has enabled us to withstand the effects of these economic headwinds better than most,” McArthur said. “We have also tightly managed our costs and debtors collections. As a consequence, the group has performed well in this difficult climate.”

• Opened 66 new stores and created 750+ new jobs in the last 12 months.
• 925 stores and employs almost 10 000 full-time associates.
• The Apparel chains (Mr Price, Miladys and Mr Price Sport) = 68.4% of group sales
• The increase in operating profits was positively affected by Project Redgold, an initiative aimed at enhancing supply chain and merchandise processes.
• Independent market research - Mr Price continues to be the most loved apparel retailer and most frequented clothing chain
• Mr Price Sport opened six stores. Independent market research - reflects an exceptionally high brand affinity score for such a young business.
• Home chains (Mr Price Home and Sheet Street) = 31.6% of group sales
• Mr Price Franchising – increased to 14 stores.
• Debtors book - grown by 12.4%.  

Adapted from Source: www.mrpricegroup.com, 12 November 2008