Mr Price Group (MRP) Investor Day 2024 summary

Supply chain strategy and logistics

• Focus on a simple, scalable, and tech-driven supply chain with stock in distribution centers or stores, minimizing pipeline time and maximizing replenishment efficiency based on sales demand.

• Technology and data-driven processes, including a supply chain control tower, underpin operations and enable actionable insights and integrated risk management.

• Diversified carrier strategy, strong partnerships with Transnet, and flexible extraction strategies mitigate global shipping disruptions and port inefficiencies, ensuring rate and capacity security.

• Expansion plans include upgrading the Gauteng facility by 2026 to handle more volume, support e-commerce growth, and enable integration of new divisions, with a hub-and-spoke network of 12 depots nationwide.

• Integration of acquired divisions (Power Fashion, Yuppiechef, Studio 88) leverages process-based logistics for scale and efficiency, with phased onboarding and operational consolidation planned through FY2030.

ESG integration and performance

• ESG is embedded in governance and operations, with a dedicated committee, performance linked to executive remuneration, and a six-pillar framework prioritizing social value, associate wellbeing, economic value, and environmental stewardship.

• Achieved significant reductions in plastic usage (over 45 million fewer bags), high product sustainability attributes (47.5 million units), and over 91% waste recycling at key facilities.

• Over 50% of products sourced from Africa, with ZAR 6.46 billion spent on African procurement, 103.5 million units procured locally, and robust supplier development and compliance programs.

• 97% factory visibility and 94% audit coverage, with strict onboarding, continuous monitoring, and contractual recourse for non-compliance.

• Social achievements include 6,568 youth employed through JumpStart, 96.9% employment equity, and R29 million invested in small and medium black-owned suppliers.

Climate and sustainability initiatives

• Climate change action plan developed in 2024, with a 2.25% reduction in total emissions year-on-year.

• Key environmental actions include a 61.7% reduction in single-use plastic shoppers, 86.5% reduction in plastic packaging, and 97.1% recyclable packaging.

• Distribution centers utilize 100% harvested rainwater, 93% electric handling fleet, and recycle 93% of waste.

• Circularity initiatives focus on value chain reuse, excess fabric utilization, and textile waste recycling, especially through Power Fashion.

• External recognition includes top ESG ratings from Sustainalytics and continued inclusion in the FTSE4Good Index.