Mr Price has expanded its local procurement efforts, spending more than R5bn on products made in SA and increasing domestic sourcing by more than 53% over the past five years.
This positions the retailer as a major player in supporting domestic manufacturing and job creation. At a time when global supply chains are volatile and unemployment remains high, the company’s local sourcing strategy is likely to resonate with policymakers, suppliers and customers alike.
Mr Price said in its 2025 annual report that more than 127.7-million units were procured locally in the past year. These products include apparel, homeware and accessories across its major brands including Mr Price Apparel, Power Fashion, Sheet Street and Miladys.
The group, which is valued at R57.6bn on the JSE, operates a predominantly cash-based retail model, with 89.3% of sales conducted in cash. This model, combined with efficient procurement and low markups, has allowed it to offer competitive prices while supporting local suppliers.
Factory visibility also featured as a focus area in the group’s supply chain strategy. Mr Price reported 96.6% visibility into its tier 1 and tier 2 factories. This enables it to maintain transparency, monitor compliance and ensure ethical sourcing practices. The report highlights that this level of supply chain oversight is important to customers and shareholders, particularly as environmental and social issues move up the corporate agenda.
“The 64.7-million products sold contain a sustainable material or cleaner production attribute,” the company said, indicating that its sustainability focus goes beyond sourcing location and includes product design and packaging.
Mr Price said 97% of its product packaging was either recyclable or made from recycled content. It has removed more than 159-million plastic packets from circulation since the 2023 financial year. These efforts helped it retain its inclusion in the FTSE4Good Index Series, a recognition of companies with strong environmental, social and governance practices.
The sustainability measures are integrated into the group’s broader strategy. “We recognise that sustainable value creation relies on an evolving, agile and sustainable business model that supports the effective execution of our strategy,” the group said.
With more than 32,000 associates and more than 3,000 stores, Mr Price’s supply chain and sourcing choices have a wide-reaching effect across the retail ecosystem. The group operates in nine countries, but 92.1% of its retail sales come from SA.
The company reported group retail sales of R39.4bn for the financial year to end-March, with year-on-year growth of 7.8%. Operating profit increased 8.9%, and headline earnings per share grew 10.7%.
Mr Price CEO Mark Blair said the company’s strong performance affirmed its position as a “value champion”, with notable market share gains of 50 basis points according to RLC, 120 bps per Stats SA, and 40 bps in telecoms per GfK. The group reported an 80 bps increase in gross margin and 8.9% growth in operating profit, supported by all three business sectors.
Blair said recent acquisitions contributed R1.2bn in operating profit, reflecting the group’s disciplined approach to selecting earnings-accretive investments. However, he acknowledged that stock-turn targets were missed due to unpredictable supply chain disruptions, though early stock arrivals in the new financial year indicate improving conditions and potential to ease lead time buffers.
Blair said future investment decisions would be focused on ensuring they would provide strong long-term earnings growth and over time bring material progress for the group in achieving its vision.
“Substantial effort and progress have been made by our apex strategy team in researching and evaluating opportunities that will support these outcomes, and we will communicate our plans with the market at an appropriate stage,” he said.
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