Mr Price Home store at Canal Walk, Century City. Picture: Ian Landsberg/Independent Newspapers
Mr Price Group’s share price fell up to two percent yesterday after it said sales reached double-digit growth in the 13 weeks to December 31 and that it has gained market share for six consecutive months, with stronger sales in December.
In December, traditionally the strongest month for retailers due to the festive season and holidays, group retail sales increased 12.8%. Mr Price Apparel and all acquired businesses saw double-digit growth in the month, and 70 basis points of market share were gained, the group directors said in a trading statement yesterday.
“The 2025 economic growth outlook for South Africa is anticipated to improve..A steadily improving consumer environment, aided by decreasing inflation and lower interest rates, continues to build a solid platform for growth in comparison to recent years,” Mr Price’s directors said.
The share price traded 1.7% lower at R157.70 Wednesday afternoon, but it was still a comfortable 49% ahead of the price a year ago.
For the 13-weeks, the clothing, accessories and home product retailer said it had gained market share and gross profit margins - group sales rose 10.6% to R14.6bn.
Retail selling price inflation was 5.3% due to fewer markdowns. Total unit sales increased 4.8% to 110.4 million. Market share gains of 60 basis points, as per Retailers' Liaison Committee (RLC) data, were supported by comparable store sales growth of 6.3%.
Mr Price's management had earlier last year forecast sales growth of around 6.5% to 7% for the 2024 financial year. Sales in the first three weeks of January was “encouraging” with double-digit growth and gross profit margin gains across each of its trading segments.
Seventy-eight new stores were opened and the store footprint ended at 3 031 stores.
The directors said the group outperformed the comparable market's retail sales growth of 6.4% (as per RLC), gaining market share in each month.
Previously, the group said its trading performance had started to gain momentum in the third quarter against an improving consumer backdrop. Retail sales in October increased 11.5%, with resultant market share gains of 70 basis points.
Sales further improved in the first two weeks of November, increasing 14.7%, resulting in sales growth of 12.4% in the combined first seven weeks of the third quarter.
Sales in the last two weeks of November, however, were not comparable from last year due to Black Friday occurring in week 4 in 2024, versus week 3 in 2023, while the shift in the retail calendar resulted in part of the Black Friday weekend and Cyber Monday falling into December.
Certain pay-days and social grant payments were moved into December in 2024 versus November in 2023.
The group its retail sales growth of 5.9% for November outperformed the total comparable market's growth, the directors said.
Online sales increased 10.5%. Online sales contributed 1.8% of total retail sales, with a strong growth of 21.9% in December.
Studio 88, the seller of international and local branded clothing and apparel, increased retail sales by double digits. Power Fashion, the price-value fashion retailer, gained market share for thirteen consecutive quarters.
The Homeware segment's retail sales growth of 7.9% was its highest quarterly growth of the financial year to date. Comparable store sales increased 5.8% and unit sales increased 4.7%.
The Telecoms segment lifted retail sales by 16.5%, driven by strong performances over Black Friday and in December.
Figures from Statistics South Africa figures released Wednesday showed retail sales increased 7.7% year-on-year in November as consumers benefited from last year’s interest rate cuts, declining inflation, and a pension reform that allowed fund members to make partial withdrawals before retirement. The increase was faster than October’s revised 6.2% gain and the 5.5% predicted by economists.
BUSINESS REPORT
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