Latest news with #MrPrice
Zawya
2 hours ago
- Business
- Zawya
South Africa: End of tax loophole for Shein and Temu starting to have impact, say local retailers
South Africa's closure of a tax loophole that benefited global discount e-commerce retailers Shein and Temu is starting to show positive signs as some consumers reject the higher prices, the CEOs of local fashion retailers Mr Price and TFG said. Last November, South Africa's tax authority ended the practice known as "de minimis", which allowed companies to drop-ship packages valued at less than R500 rand from suppliers in China to consumers in South Africa, paying a flat rate of 20% in lieu of customs duties, and no VAT of 15%. Other markets including the United States, Britain and the European Union are also closing or planning to close loopholes that have given low-cost online platforms like Shein and Temu, owned by PDD Holdings', pricing advantages. "There's nothing punitive about them, it's just levelling the playing field so that everybody trading in South Africa and importing products pays exactly the same duties," TFG CEO Anthony Thunström told Reuters in an interview after the company's earnings release. Both Thunström and Mr Price CEO Mark Blair said it was difficult to get official data to quantify the exact impact on the fast-fashion giants. "But our understanding is that the closure of that loophole has significantly slowed down some of the international pure play online into South Africa," Thunström said. Local brick-and-mortar fashion and e-commerce retailers had urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field. "One thing all of us have seen on Shein is the social media outrage that's now taken place because of higher prices, so it does make us feel comfortable that the new legislation has been applied correctly," Blair told investors during an earnings presentation. "I think it's still a bit erratic, not across the board and if I look at our own e-commerce sales, it grew slightly ahead of our store sales, so there must be some positive impact," he added. Mr Price and TFG are also investing in technology and enhancing product ranges as they bid to gain market share. Mr Price also added that it expects to invest R1.6bn this financial year ending March 2026 in about 200 new stores, supply chain, store revamps and technology, while TFG said it plans to open over 100 new stores. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
20 hours ago
- Business
- Zawya
South Africa: Strong second-half sales boost Mr Price's annual profit
South African fashion retailer Mr Price reported a 10.1% increase in full-year earnings, supported by strong second-half performance amid improved sales growth and reduced markdowns. Diluted headline earnings per share, a key profit measure in South Africa, rose to R13.79, while operating profit grew 8.9% to R5.8bn in the 52-week period ended 29 March 2025. Group revenue rose 7.9% to R40.9bn, with retail sales up 7.8% at R39.4bn. Comparable store sales increased by 3.4%. "The first half of the financial year was challenging for the retail sector but improved in the second half. The growth in sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments," group CEO Mark Blair said in a statement. The group's gross profit margin expanded 80 basis points to 40.5%, due to strong "merchandise execution" and lower markdowns, the retailer said. Retail sales and comparable store sales in the second half accelerated to 9.9% and 5.7%, respectively, the retailer said. This came despite a weaker February for the retail sector and the shift of school holidays and Easter from March to April. Mr Price, which also sells sportswear and appliances, declared a final dividend of 593.50 cents, up 12.7% from last year.
Fashion Network
21 hours ago
- Business
- Fashion Network
South African clothing retailers add stores as economic forecast weakens
'There is a level of retail saturation in South Africa and when economic growth is so weak, there's limited scope for organic space growth,' said Atiyyah Vawda, an executive director at Avior Capital Markets in Johannesburg. 'So new growth comes from brands they recently acquired and under-penetrated brands that do not have sufficient exposure in particular areas.' Still, retailers have slowed space growth compared to a year ago and carefully evaluate new openings to ensure sufficient returns, Vawda said. 'A huge amount of development is taking place outside of major metro areas in the country,' TFG Chief Executive Officer Anthony Thunström said in an interview Friday. In these areas, 'there's a massive informal economy and a lot of its cash often isn't really measured in official GDP numbers.' Retailers remain selective about store expansion and may open fewer outlets. 'We don't want to get sucked into a space race,' Mr Price CEO Mark Blair told reporters. 'It's not just growth, it's quality space,' that meets strict profitability criteria. Blair said last year, the Durban-based company rejected up to 70% of the locations offered. Clothing retailers account for three of the five worst-performing stocks on the FTSE/JSE Retailers Index this year, with building material retailers occupying the other two spots. Shoppers seeking T-shirts and shoes that fit their budgets are also increasing their online purchases. Almost 6% of TFG's local sales come through its online Bash platform, and the company expects that share to nearly double over the next two or three years. This trend may also temper the growth of full retail outlets, as more orders ship from large distribution centers and so-called dark stores. 'That stock doesn't necessarily have to sit in fully lit stores anymore,' Thunström said. 'We can make it more efficient.' TFG's online unit recently became profitable, about two years ahead of schedule.
Zawya
a day ago
- Business
- Zawya
End of tax loophole for Shein starting to have impact, say South African retailers
JOHANNESBURG - South Africa's closure of a tax loophole that benefited global discount e-commerce retailers Shein and Temu is starting to show positive signs as some consumers reject the higher prices, the CEOs of local fashion retailers Mr Price and TFG said on Friday. Last November, South Africa's tax authority ended the practice known as "de minimis", which allowed companies to drop-ship packages valued at less than 500 rand ($28.12) from suppliers in China to consumers in South Africa, paying a flat rate of 20% in lieu of customs duties, and no VAT of 15%. Other markets including the United States, Britain and the European Union are also closing or planning to close loopholes that have given low-cost online platforms like Shein and Temu, owned by PDD Holdings', pricing advantages. "There's nothing punitive about them, it's just levelling the playing field so that everybody trading in South Africa and importing products pays exactly the same duties," TFG CEO Anthony Thunström told Reuters in an interview after the company's earnings release. Both Thunström and Mr Price CEO Mark Blair said it was difficult to get official data to quantify the exact impact on the fast-fashion giants. "But our understanding is that the closure of that loophole has significantly slowed down some of the international pure play online into South Africa," Thunström said. Local brick-and-mortar fashion and e-commerce retailers had urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field. "One thing all of us have seen on Shein is the social media outrage that's now taken place because of higher prices, so it does make us feel comfortable that the new legislation has been applied correctly," Blair told investors during an earnings presentation. "I think it's still a bit erratic, not across the board and if I look at our own e-commerce sales, it grew slightly ahead of our store sales, so there must be some positive impact," he added. Mr Price and TFG are also investing in technology and enhancing product ranges as they bid to gain market share. Mr Price said on Friday that it expects to invest 1.6 billion rand this financial year ending March 2026 in about 200 new stores, supply chain, store revamps and technology, while TFG said it plans to open over 100 new stores. ($1 = 17.7839 rand)
The Herald
3 days ago
- Business
- The Herald
End of tax loophole for Shein starting to have impact, say SA retailers
South Africa's closure of a tax loophole that benefited global discount e-commerce retailers Shein and Temu is starting to show positive signs as some consumers reject the higher prices, the CEOs of local fashion retailers Mr Price and TFG said on Friday. Last November South Africa's tax authority ended the practice known as de minimis , which allowed companies to drop-ship packages valued at less than R500 from suppliers in China to consumers in South Africa, paying a flat rate of 20% in lieu of customs duties and no VAT of 15%. Other markets including the US, UK and EU are also closing or planning to close loopholes that have given low-cost online platforms such as Shein and Temu, owned by PDD Holdings', pricing advantages. 'There's nothing punitive about them. It's just levelling the playing field so everybody trading in South Africa and importing products pays the same duties,' TFG CEO Anthony Thunström told Reuters in an interview after the company's earnings release. Thunström and Mr Price CEO Mark Blair said it was difficult to get official data to quantify the exact impact on the fast-fashion giants. 'But our understanding is that the closure of that loophole has significantly slowed down some of the international pure play online into South Africa,' Thunström said.
