Fashion retailer Mr Price grew sales in the first quarter of its new financial year, gaining market share despite a weaker end to the period.
The group reported that retail sales increased by 6.3% to R9bn in the quarter ended June 28, while comparable store sales grew by 3%.
Market share gains of 10bps were recorded during the period as the group outperformed the total comparable market’s retail sales growth, according to the Retailers’ Liaison Committee (RLC). It gained more than R300m in market share from competitors over the last 12 months, highlighting the effectiveness of its differentiated fashion-value offering, the group said.
Mr Price saw strong trading in April and May, helped by early winter demand and the timing of Easter. But June proved challenging as school holidays shifted and last year’s high base made comparisons tougher, leading to heavier discounting, it said.
Even so, the group exited the winter season with clean stock and bounced back in early July with double-digit sales growth.
Performance was broad-based, with its core apparel business holding firm, homeware continuing its recovery and telecoms extending its growth streak. Online sales also improved, especially in homeware.
While the broader economy remains uncertain, Mr Price said it was confident it could keep growing profitably, with new store openings and disciplined capital use supporting its longer-term plans.
“Annual space growth is anticipated to increase on a weighted average basis by about 4% and is expected to continue delivering against the group’s high return thresholds. Sharp focus remains on driving consistent performance by its key growth vehicles in the Apparel and Telecoms segments, while the strategic improvements made on strengthening the Homeware segment have delivered positive progress,” Mr Price said.
“These efforts, supported by the group’s fiscal discipline and considered capital allocation framework, give it confidence that it can achieve its medium-term targets and continued delivery of sustainable long-term returns.”
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