Mr Price celebrates 40 years of growth, with ambitious plans for the future
Image: IAN LANDSBERG Independent Newspapers.
'This year marks 40 years since the opening of the first Mr Price store, and as we celebrate this milestone, we reflect on a journey driven by a bold vision: to make fashion accessible to all South Africans,' said Mark Blair, the CEO of Mr Price, in the retailer's annual report released on Friday.
Since those early days, Mr Price has grown to 3,030 stores, generated over R40 billion in revenue, achieved a market capitalisation of R65 billion, and reached an operating profit nearing R6 billion. Blair emphasized that the core principles established at the company's inception—low-cost operations, bulk purchasing, minimal markups, and cash-based retailing—continue to underpin its business model. 'These fundamentals have allowed us to consistently deliver high-quality fashion at affordable prices, fueling our growth and resilience over the decades,' he noted.
Looking ahead to the first quarter of the 2025 financial year, Blair highlighted the ongoing challenges within South Africa's constrained economy. However, after the national elections and the formation of the Government of National Unity (GNU), consumer confidence surged, creating a more favorable environment for retail during the latter half of 2024.
Despite challenges posed by the global economy and domestic concerns over the stability of the GNU - along with uncertainty surrounding the national budget and potential VAT hikes - Mr Price made significant gains. The retailer increased its market share by 50 basis points (bps) according to the Retailers' Liaison Committee (excluding Studio 88 and Mr Price Sport), 120 bps per Stats SA (including all divisions), and 40 bps in telecoms, based on GfK data. Gross margin rose by 80 bps in both merchandise and cellular segments.
Operating profit grew by 8.9%, with each of the company's three main sectors contributing meaningfully. Blair also noted that the three businesses acquired in recent years achieved a combined operating profit of R1.2 billion, a testament to Mr Price's disciplined approach to acquisitions. 'We are selective in our acquisitions, ensuring they align with our stringent investment criteria and support our long-term growth goals,' Blair explained.
However, Blair expressed regret that the company didn't meet its stock turn target due to unpredictable supply chain disruptions, particularly from shipping delays and Durban Port challenges. On a positive note, stock arrivals were earlier than expected, signaling improvements in the supply chain. 'This suggests that our adjustments to buffer supply chain lead times are beginning to show results,' he added.
Looking to the future, Blair remains optimistic that market volatility will stabilise. With falling interest rates and a focus on economic growth and employment from the GNU, he expects consumer spending to recover. In April and May of the new financial year, sales were up 11.6%, setting a strong tone for 2026.
Mr Price's recent investments and capital allocation decisions have positioned the group for success, even as the retail landscape improves. In the past year, the company invested R830 million, opening 184 new stores, which have already exceeded return expectations.
Looking ahead, Mr Price plans to increase capital expenditure to R1.6 billion in 2026 - the highest in its history. This will include the opening of 200 new stores, further investments in store expansions and technology, and the development of a new Gauteng distribution center slated to go live by September 2026.
'Our vision remains ambitious, and every investment we make is aimed at delivering long-term earnings growth and advancing our group's strategic goals,' Blair stated. 'Our Apex strategy team is working diligently to identify and evaluate opportunities that align with this vision, and we will share our plans with the market at the appropriate time.'
BUSINESS REPORT
Visit: https://businessreport.co.za/
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
29 minutes ago
- Daily Maverick
Right goals but poor execution hampering SA's vital National Dialogue
With inclusive economic growth, the Rainbow Nation dream is possible, but can an ANC-dominated dialogue deliver? Amid significant discord, South Africa's year-long National Dialogue began in Pretoria last week. The process aims to forge a new social compact and essentially lay the groundwork for the next phase of the country's National Development Plan. It would be a wasted opportunity if the dialogue's rocky start stymied progress towards achieving these two compelling goals. Before the launch, the dialogue's proposed large budget, lack of civil society engagement and rushed process stirred public anger. Then a public spat broke out between President Cyril Ramaphosa and former president Thabo Mbeki, when the latter felt piqued that the government and not the Preparatory Task Team — in which his foundation played a key role — was in the driving seat. Eventually, several legacy foundations, which had assumed a leadership role in preparing for the process, walked out in protest. The Democratic Alliance, the second-largest party in the Government of National Unity (GNU) after Ramaphosa's African National Congress (ANC), had also withdrawn earlier. Mbeki was the first to call for a national dialogue to be held after the May 2024 general elections, which would address corruption, service delivery failures and the systemic decay in governance. During those elections, the ANC suffered an unprecedented 17 percentage point drop in support, forcing it to establish a GNU that eventually included 10 parties. There is considerable suspicion that the dialogue is intended to resuscitate the political fortunes of the ANC before the 2026 local and 2029 national elections. Those concerns seemed validated when, instead of drawing inspiration from South Africa's widely hailed 1994 Constitution, Ramaphosa said the dialogue would draw on the 1955 Congress of the People and Freedom Charter — which underpin ANC policy. Without a solid foundation and clarity of purpose, never mind budget and structure, current prospects for the dialogue are not promising. An updated forecast from the African Futures team at the Institute for Security Studies reveals that South Africa's gross domestic product (GDP) per capita has stagnated or steadily declined since 2013, with a brief upturn in 2018. On its current growth trajectory, the country will recover to its 2013 level in 2039, implying 26 lost years. Even in a high-growth scenario, that point would, at best, be reached in 2032, some years after the next national elections. It is widely reported that South Africa has the highest unemployment and inequality rates globally. As if we are not doing badly enough, our foreign policy is among the reasons the United States has imposed 30% punitive trade tariffs on South Africa. The ANC has been in power since 1994, so cannot escape primary responsibility for this dismal state of affairs. The dialogue's goal of forging a social compact speaks to the extent of national disharmony — a situation not unique to South Africa. Instead of the unifying vision of a Rainbow Nation, the ANC has prolonged the racialised politics of the past. Policies intended to promote inclusion do so selectively and perpetuate inequality. Instead of fixing structural drivers to enable broad empowerment — such as quality education, health and access to opportunity — a host of race-based policies smother the economy. Examples are preferential procurement policies and the Employment Equity Amendment Act. This comes on top of weak implementation, lack of consequence management and widespread corruption in the government. Somewhere, the ANC has lost its way and the extent of its corruption, incompetence and internal fractures is on daily display in the media. What is left of the party's ideological core is provided by former members of its politicised armed wing, Umkhonto weSizwe, who today form the centre of resistance within the ANC to Ramaphosa. The latest example was the chief of the South African National Defence Force's calculated call for closer relations with Iran — at a time when South Africa is trying to negotiate a reduction in US tariffs. SA in search of its mojo South Africa is in search of its mojo, largely as a result of the ANC's loss of moral purpose. The party is widely expected to do badly in the forthcoming local and general elections, but is likely to remain the largest political party nationally. What happens in the ANC should therefore be of concern to all South Africans. The way forward on the dialogue's second goal is clear — draw up a follow-on National Development Plan that has the broadest political, business, labour and civil society support, thus enabling it to survive beyond the 2029 elections. That requires four steps. First, harmonising the National Planning Commission and its work with the Eminent Persons Group appointed to guide the National Dialogue. Second, undertaking a comprehensive diagnostic analysis, as was done before the current National Development Plan. Third, crafting the follow-on plan through wide consultations and expert inputs, and fourth, taking it out for public engagement, amendment and finalisation. South Africa should align its planning horizon with the third 10-year implementation plan of the African Union's Agenda 2063. Its foreign and trade policies should focus on the continent, which objectively presents the most lucrative opportunities. The dialogue's first goal is more difficult but perhaps ultimately most important. In simple terms, South Africans need to recapture the dream of the Rainbow Nation, where poor people are not black, but simply poor people and where business is not white, but simply business. Even the Chapter 9 institutions created to promote equity and justice view pronouncements on race through the lens of past injustice, which is understandable but unhelpful in the context of our development challenges. South Africa needs to pursue a common citizenship and commitment to the future. Rekindling that non-racial vision could be the dialogue's largest contribution. But racial disparities in wealth, employment and education make this challenging, especially as race-based analyses have animated ANC breakaway parties, such as the Economic Freedom Fighters and the new uMkhonto Wesizwe party. Such analysis is also entrenched in most ANC factions. This does not mean sweeping the past under the carpet. But scratch deeply enough, and most countries have a brutal past. Ours is just more recent than most. How does South Africa forge a post-apartheid future when policies that are intended to promote inclusion undermine it? The National Dialogue's two objectives are closely linked. Only sustained, inclusive economic growth will allow us to deal with the results of our divided past and ameliorate its effects. To unlock growth, the country needs all hands on deck, particularly from those with the largest stock of education, wealth and access to finance. Unfortunately, given its shaky start, they are most likely to remain on the dialogue's periphery.
IOL News
3 hours ago
- IOL News
Buying a home as a couple? Key tips to make the process smooth and successful
It is key for a couple to communicate when they buy a property together. Image: Freepik Buying a house as a couple is as much a journey about the relationship as it is about the property. 'It's a partnership. If you work towards understanding one another, communicate openly, play to your strengths, and seek expert advice, you're not just buying a house – you're building a stronger foundation for the rest of your lives together,' says René Roux, general manager for Client and Intermediary Engagement at Sanlam. Roux and her husband recently went house-hunting. She said buying a house is one of the most expensive investments one will ever make, so being on the same page as their partner (or co-investor) is very important. 'We found navigating the process challenging, yet we have the same money personality! Those couples who have different personalities will definitely come up against some challenges.' Roux says this is particularly relevant for the growing number of young South Africans entering the property market. She said Lightstone data from last year revealed that just over 70% of first-time property buyers are under 35, which means that many couples are facing these complex financial conversations early in their lives together. Roux offers guidance to help different money personalities navigate the journey to find their dream home. Sanlam has identified seven distinct money personalities that define these financial behaviours. These range from the risk-averse prepared protector, who prioritises saving and security, to the goal-driven high-stakes achiever, who thrives on calculated risks for high returns. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Roux says understanding one's respective money personalities is about self-awareness. She said it helps one understand why they disagree, which can turn a potential argument into a productive conversation. She said, sharing her own experience, revealed that both she and her husband of 35 years are prepared protectors. 'I wasn't surprised by my result, as I'm an absolute planner. However, I was surprised to find that we were the same because, day-to-day, we can have very different approaches. This shows that even within the same personality type, there are nuances.' The GM said couples should consider these common clashes when house-hunting: A high-stakes achiever might see a property as an investment to be flipped for a quick profit. Their partner, a prepared protector, may be eyeing a stable, long-term family home, which can cause a fundamental clash in vision. A spontaneous buyer, who is often emotion-driven, might fall in love with a home that's over budget and want to sign immediately. Their partner, a calculated planner, may be prone to 'analysis paralysis', wanting to analyse every possible risk and alternative, leading to frustration and missed opportunities. A relaxed planner prioritises experiences and may want to budget for immediate renovations to enjoy the home now. In contrast, a generous guardian might feel that money should be saved in case a family member needs help, putting personal homemaking goals on the back burner. Roux encourages couples to have open and honest conversations about their finances and expectations to avoid misunderstandings. 'I'm a spreadsheet queen,' she admits. 'Everything needs to be on a spreadsheet – the purchase price, transfer fees, attorney costs, potential renovations, the cost of the move itself and new appliances or furniture which might be necessary. "And if you are selling your current home as well, additional costs, like agent commission, various certificates of compliance, and even capital gains tax, must be factored in. If you don't talk about these things and create a realistic budget, you're setting yourself up for financial strain.' She added that this planning phase is also about aligning on a shared future. Roux encourages couples to discuss their long-term vision for the property. 'You must always keep the bigger picture in mind. I had a list of non-negotiables for our home because it's ultimately where we want to retire one day. And my husband had his own list. We had to communicate constantly, and compromise if needed, to ensure we were both happy and that our individual needs contributed to our collective goal.' The GM said once they understand each other's money personalities, they can divide responsibilities in a way that leverages their natural strengths, making the process more efficient and less stressful. Roux explains that knowing their personalities helped them spread the load. 'Because I'm the meticulous planner, I took care of the budgets, communicating with the attorneys and ensuring the long-term finances were in order. "My husband is more flexible and is very good at handling day-to-day logistics, like arranging the builders and the moving company. It just helped to know exactly what each person had to do and where our respective strengths lie. It made the process so much easier and more enjoyable.' She said that while a couple's teamwork is essential, an objective professional financial adviser can provide the clarity and foresight needed to make the best long-term decisions. 'We've had the same planner for nearly 25 years. "She has walked with us through our lives and was our first call when we decided to buy this house. She understood our entire financial portfolio and helped us structure the purchase in the best way possible, ensuring we didn't compromise our retirement goals.' According to the latest census by Stats SA, approximately 4.7 million South Africans now live with an unmarried partner or in a cohabiting arrangement, indicating just how mainstream shared living has become. In a co-living situation, a residential space is shared by multiple (often unrelated) people, typically with private bedrooms and shared common areas. The concept has taken off in South Africa's high-cost urban areas, said Grant Smee, CEO of Only Realty Property Group, last month. To mitigate potential issues, Smee advised that all housemates draft a written agreement covering essential topics: Expense breakdowns such as rent, utilities or Wi-Fi. House rules around communal living, such as guests and quiet hours. Cleaning schedules, chores and shared responsibilities. Exit terms in case one party wants to leave. 'All agreements, payments and relevant communications should be documented and stored,' noted Smee. 'This can be vital if legal disputes arise. Having upfront clarity will help reduce disputes and ensure all parties are on the same page.' Independent Media Property
The South African
9 hours ago
- The South African
SASSA SRD payment dates for August
The South African Social Security Agency (SASSA) has confirmed the August COVID-19 Social Relief of Distress (SRD) grant payment dates. Beneficiaries will receive funds between 27 and 30 August. SASSA urged beneficiaries to note the set dates. The agency explained that payments will be processed in cycles, and applicants with outstanding issues will only receive funds once their details have been cleared. 'The next payment date for August for COVID-19 SRD is from 27 to 30 August,' the agency stated. Many applicants continue to question what a 'referred' status means when checking their SRD applications. According to SASSA, this status signals that the applicant must verify their identity before receiving payment. 'It means you must verify your identity,' the agency explained. SASSA added that the measure is part of its security checks. 'You get referred status to enhance security, ensure that we are paying the eligible beneficiary and minimise the risk of paying the wrong person,' the agency said. Beneficiaries who resolve their 'referred' status will not lose their payments. SASSA confirmed that once the verification process is completed, the applicant's payments will resume normally. 'If referred status has been resolved you will get paid from the next payment cycle and historic payments will be paid as per the schedule,' the agency noted. The SRD grant continues to support millions of South Africans who face economic hardship. However, SASSA has reminded applicants to keep their personal information updated to avoid delays in accessing the funds. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
