Mr Price : Trading Replace for the 13 weeks ended 2 July 2022


Mr Price Group Limited

(Registration quantity 1933/004418/06) Incorporated within the Republic of South Africa ISIN: ZAE000200457

LEI quantity: 378900D3417C35C5D733

JSE and A2X share code: MRP

(“Mr Price Group” or “group” or “Company”)


During the primary quarter from 3 April 2022 to 2 July 2022 (the “Period”) of the monetary 12 months ending 1 April 2023 (“FY2023”), the group recorded progress in retail gross sales and different revenue (“RSOI”) of seven.0% to R6.9bn. Total retail gross sales of R6.6bn grew 6.4% and different revenue elevated 25.5% to R270m. This efficiency needs to be evaluated towards the next components:

  • the excessive base impact attributable to the submit COVID-19 restoration efficiency throughout the first quarter of the 2022 monetary 12 months (“FY2022”). During this era the group outperformed the market by recording gross sales progress of 70.3% and gained market share
  • gross sales progress in April and May 2022 was adversely impacted by the non-payment of the COVID-19 social aid of misery grant, negatively impacting family disposable revenue
  • a cloth loss in buying and selling hours resulting from ongoing load shedding in South Africa
  • The group achieved a big milestone in its retail modernisation programme by implementing its new Enterprise Resource Planning (ERP) system on 4 April 2022. This has been a multi-year journey to de-risk the group’s legacy IT atmosphere and supply a secure platform to assist each operations and future progress. Projects of this magnitude and complexity are anticipated to have unexpected brief time period ‘go- stay’ challenges. Although April and May 2022 commerce was negatively impacted, administration is assured that the fabric points are resolved, the proof of which is the group’s gross sales progress of 14.8% in June 2022, which additional accelerated in July (refer outlook part). The group acknowledges the numerous effort and collaboration undertaken by its Technology and broader enterprise groups in attaining this transformation.

Retail gross sales for the group’s corporate-owned shops was as follows:

Retail gross sales progress

Contribution to group

Q1 FY2023 vs FY2022

retail gross sales Q1 FY2023

Apparel section



Home section



Telecoms* section






*Represents Cellular handsets & equipment

The commentary beneath pertains to key group retail efficiency metrics and contains Power Fashion (included within the base for the total interval) and Yuppiechef (efficient 1 August 2021).

South African retail gross sales grew 6.6% (comparable shops 1.9%) to R6.2bn. Store gross sales elevated 6.2%. Non-South African corporate- owned shops gross sales grew 2.9% to R452m.

Group on-line gross sales elevated 21.4% (3.1% contribution to complete retail gross sales), towards the excessive progress of 61.0% skilled within the FY2022 Period.

Total unit gross sales grew 0.1%. Group retail promoting worth inflation of 6.3% was rigorously managed with a purpose to keep the group’s main worth positioning. The GP margin elevated over the Period.

The retailer footprint elevated by 27 new shops and the group’s complete footprint expanded to 1 745 shops. Trading area elevated 4.5% on a weighted common foundation and 5.3% on a closing foundation.

The group stays extremely money generative, supported by money gross sales constituting 84.6% (FY2022 Period: 85.5%) of complete retail gross sales and growing 5.3% throughout the Period. Credit gross sales elevated 13.4% and the group continued its conservative credit score granting posture.

The attire section grew 8.0% over the Period towards base progress of 71.4%. The section’s efficiency improved because the ERP system started to stabilise in May 2022, reporting market share beneficial properties in response to the Retailers’ Liaison Committee (RLC-May 2022 newest accessible). Sales progress in June and July 2022 (thus far) was at double-digit ranges.

The residence section gross sales elevated 1.6% towards base progress of 70.2%. The international development of diversionary spend is rising within the sector, as shoppers have begun to re-direct their disposable revenue to journey, eating places, attire, and different discretionary classes, as COVID-19 restrictions have fallen away.

Cellular handsets and equipment grew gross sales 4.4% towards base progress of 46.7% and continued to achieve market share in response to Growth for Knowledge (May 2022 newest knowledge accessible).

Other revenue grew 25.5% to R270m over the Period, supported by greater debtors’ curiosity and charges from the teams debtors’ e-book, which skilled constructive progress resulting from greater credit score gross sales and the repo fee improve of fifty foundation factors.

The group’s improved clearances and gross sales progress in the direction of the top of the Period resulted in stock closing at acceptable ranges, together with terminal winter inventory in step with plan.


The ongoing rise in enter prices and the weakening trade fee in South Africa will proceed to gasoline a extremely inflationary atmosphere. Coupled with rising rates of interest, the patron basket will stay beneath stress, requiring trade-offs in family expenditure and an elevated expectation of worth.

The beforehand guided excessive single digit enter inflation might be rigorously managed, to make sure the group’s worth positioning just isn’t compromised. It is assured that its strategically positioned divisions can collectively create the defensive hedge required to offer worth to clients and achieve market share. The group anticipates its H1 FY2023 gross margin to exceed H1 FY2022. Its vogue differentiation at Every Day Low Prices is anticipated to offer a key aggressive benefit on this retail atmosphere.

Despite the challenges outlined above, some constructive tailwinds might materialise within the second quarter of FY2023. These embody the continuation of the COVID-19 social aid of misery grant cost (together with relaxed minimal revenue standards thresholds), in addition to again pay in July and August 2022 (for the months of April and May 2022 non-payment). Additionally, the bottom in July and August 2022 is weaker because of the civil unrest affect in 2021, which induced 111 of the group’s shops to shut.

The group is comforted by the growing momentum within the second half of the primary quarter and believes that it’s properly positioned to capitalise on alternatives throughout the remainder of FY2023. Sales progress for the primary three weeks of July 2022 was 18.4%, which successfully takes gross sales progress for 3 April to 23 July to eight.2%.

Focus stays on robust execution from the core buying and selling divisions, while making certain that the not too long ago acquired companies keep their constructive buying and selling momentum, as they proceed to ship on their strategic plans.

The group is inspired by the Competition Commission approvals in South Africa, eSwatini and Botswana, and the constructive interim suggestion in Zambia, regarding the acquisition of the Studio 88 Group. The collaborative interplay and the tempo of choice making have been properly acquired. The closing approvals in Zambia and Namibia stay excellent however the group is comfy with the progress in these territories thus far. The transaction is unlikely to shut earlier than the top of August and the efficient date of the transaction might be communicated in the end.

The above-mentioned figures and any data contained herein don’t represent an earnings forecast or estimate and haven’t been reviewed and reported on by the Company’s exterior auditors.


25 July 2022

JSE Equity Sponsor and Corporate Broker

Investec Bank Limited


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