Mr Price has strengthened its position in the prepaid handset market with the launch of its own private-label cellphone brand, Salt.
The move forms part of the retailer’s push to accelerate inroads made by its telecoms division, which has recorded double-digit sales growth and gained market share over the past financial year amid fierce industry competition.
In its results for the year to end-March, the retailer reported that the launch of Salt contributed to improvements in gross and operating margins.
“The segment continues to be a strategic channel to increase customer engagement as it leverages the Mr Price brand halo,” it said.
The telecoms segment, which includes Mr Price Cellular and Powercell, increased retail sales 13.2% year on year, reaching R1.3bn. The segment’s gross profit margin rose by 80 basis points (bps) to 20%. According to GfK data cited by the group, it also achieved a 40 bps gain in market share over the period.
The retail telecoms space is becoming increasingly competitive. Pepkor, the dominant player in SA’s prepaid handset market, reported that by March eight out of ten prepaid handsets sold in the country were purchased through its stores. The group saw its handset market share climb 10 percentage points year on year to 80%.
Pepkor sold 6.8-million cellular handsets in the six months to end-March, with smartphones comprising 65%, a 17% increase compared with the same period last year. Its smartphone rental platform, FoneYam, is also gaining traction, boasting more than 1.5-million customers and averaging 165,000 monthly activations.
In contrast, TFG reported a decline in cellular sales in its full-year 2025 results. Sales under the TFG Africa segment fell 4.1% year on year, with a 7.1% drop in the first half and a 1.2% fall in the second. Cellular still contributed 7% to TFG Africa’s total sales.
Mr Price’s telecoms business now operates 562 in-store locations and 61 stand-alone stores, positioning it as an increasingly important contributor to the group’s profitability.
Overall, Mr Price continued to strengthen its market position, gaining 50bps in market share over the financial year, according to RLC data. The apparel division, which accounts for nearly 80% of the group’s retail sales, added R700m in market share. That momentum has carried into the new financial year, with all trading divisions reporting market share gains in April, the first month of its 2026 financial year.
Total revenue for the year rose 7.9% to R40.9bn, crossing the R40bn mark for the first time. Retail sales grew 7.8% to R39.4bn, supported by a strong second-half performance in which sales rose 9.9%.
Online sales kept pace, up 7.9% for the year. Operating profit reached a record R5.8bn, an increase of 8.9%, with the operating margin expanding by 20bps.
Headline earnings per share (Heps) rose 10.7% to 1,424c in the 52 weeks to March 29, while diluted Heps increased 10.1% to 1,379.3c, it said on Friday.
Mr Price declared a final dividend of 593.5c per share, up 12.7% year on year.
It opened 184 new stores during the year, taking the total to 3,030, and generated R8.7bn in cash from operations. With a R4.1bn cash balance and no debt, the company remains well-positioned to invest in growth. Capital expenditure in the 2026 financial is expected to reach R1.6bn, with about 200 new stores planned.
The group said it remained confident in its ability to outperform through the cycle, despite macroeconomic uncertainties.
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