Mr Price Group’s retail sales grew ahead of the market in the third quarter while it made further gains in its core market of South Africa.
The retailer said on Wednesday that retail sales in the third quarter increased by 3.6% to R15.1bn compared with the market’s growth of 1.6% as per the Retailers’ Liaison Committee (RLC).
The Durban-based group said retail sales in October increased 1.8%, ahead of the market’s growth of 1.3%. Sales growth improved during the first two weeks of November, but momentum slowed in the remaining two weeks of the month, closing with sales growth of 1.1%, slightly ahead of the market’s 1%. Sales grew 3.8% in the last six weeks of the quarter, supported by sales growth of 5.9% in the key trading month of December, which was ahead of the market’s growth of 3%, the group said.
Management is comfortable with the group’s current cash position and the shape of stock heading into the fourth quarter of the financial year, the group said.
“Adequate plans have been made to achieve targeted closing inventory levels at the end of the financial year,” it said.
South African retail sales grew 3.9% to R14.1bn in the quarter, while non-South African corporate-owned store sales increased by 0.6% to R1bn.
Total store sales increased by 3.6% while online sales were up 3.5%. Online sales accelerated in December to 8.3%. December is a key month for South African retailers as it includes the festive period and summer holidays.
The group added 64 new stores in the period, taking the total number of stores trading to 3,164.
Cash sales, which constitute 90.9% of total retail sales, increased 3.7%, while credit sales rose 2.9%.
The group said there are indications that the South African economic growth outlook for 2026 is improving, supported by low and stable inflation, the expectation of more interest rate cuts, positive effects from the strong commodity cycle and currency strength against the dollar.
However, the group flagged uncertain international political and economic environments, which could hold risk for South Africa’s improving prospects.
“The retail sector should benefit from the healthier macroeconomic environment supporting increased flow through of disposable income to discretionary categories,” it said.
In the first four weeks of January, the group delivered sales growth of 4.2%.
Management remains focused on stock management, free cash flow generation and sustainable margin expansion, it said.
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