Mr Price Group (MRP) Trading update summary

Trading performance

• Retail sales grew 4.6% to R8.5bn, outperforming the market which declined 0.2%.

• Market share increased by 90bps, with gains for 11 consecutive months and over R1.1bn gained on a 12-month rolling basis.

• Gross profit margins improved across all divisions due to lower markdowns and more full-priced sales.

• Recent acquisitions delivered the highest sales growth within the group.

• Comparable store sales rose 0.1%, and other income increased 9.3% to R321m.

Operating environment

• High interest rates, rising debt, and food inflation continued to pressure household finances.

• Retail sector impacted by timing of holidays, higher temperatures delaying winter merchandise sales, and national elections.

• Positive consumer sentiment post-election supported improved sales in June.

Segmental and channel performance

• Apparel sales grew 4.4%, accelerating to 13.6% in June, with market share gains for 11 months.

• Homeware sales increased 3.7%, with all chains gaining market share in June.

• Telecoms segment grew 13.3%, reaching a new market share high.

• Online sales rose 3.8% and surged to double-digit growth in June, driven by apparel.

• Store footprint expanded by 35 stores to 2,935, with trading space up 5.4%.